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Volume 724, April 24 – April 27, 1944
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Volume 724, April 24 – April 27, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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Diary
Book 724
April 24-27, 1944
- B - -
Book Page
(Belland, c. H.
(Bicycles
(Brill, F. V.
See Procurement Division: Surplus Property, Disposal of
Business Conditions
Haas memorandum on situation, week ending April 22, 1944 -
4/24/44
724 12
- C - -
China
Kung informs Adler Foreign Exchange Control Commission
will not object to sale of U.S. dollar drafts to
reputable business organizations and individuals to be
paid into blocked accounts in United States - 4/25/44..
138
- E -
Eccles, Marriner S.
See Post-War Planning: Currency Stabilization
Emerson, Sir Herbert
See War Refugee Board
- If -
Federal Reserve System
See Post-War Planning: Currency Stabilization
Financing, Government
Open Market Committee supplementary recommendations -
4/27/44
297
a) See also memorandum of March 29, 1944
War Savings Bonds
5th War Loan Drive: War Department offers cooperation - -
4/26/44
184
Foreign Economic Administration
See Procurement Division: Surplus Property, Disposal of
- G -
Germany
Flight of capital discussed by HMJr, White, O'Connell,
Luxford, and DuBois - 4/27/44
288
a) War Department communication
295
- H -
Hirschmann, Ira A.
Reports on visit to HMSr - 4/24/44
1
Hungary
See War Refugee Board
Regraded Unclassified
- L - -
Book Page
Latin America
See War Refugee Board
Mexico: See War Refugee Board
Lazard Freres
See Post-War Planning: Currency Stabilisation
(International Conference)
Lend-Lease
Weekly report - 4/25/44
724 104
U.S.S.R. : Mack interrogated concerning possible
statement that certain purchases have never been paid
for - 4/27/44
242
- M - -
Mexico
See War Refugee Board
Motorcycles
See Procurement Division: Surplus Property, Disposal of
- N -
Netherlands
See Occupied Territories
- o -
Occupied Territories
Invasion Currency
Netherlands: Currency Negotiations
Resume given HMJr by Luxford - 4/27/44
271
a) Correspondence with Dutch Legation
277
Conference; present: HMJr, Bernstein, Taylor,
Luxford, O'Connell, and White - 4/28/44:
See Book 725, page. 23
a) HMJr suggests cable to FDR recommending against
a loan at this time
b) Possibility of cable to Eisenhower also
discussed: Book 725, page 28
Odegard, Peter H.
University of Oregon: Correspondence concerning
presidency - 4/27/44
300
- P - -
Portugal
See War Refugee Board
Regraded Unclassified
- P - (Continued)
Book Page
Post-War Planning
Currency Stabilisation
International Conference
Federal Reserve: Eccles statement concerning -
4/24/44
724
27
a) Journal of Commerce notes failure to endorse.
183
Winant thanked for assistance - 4/25/44
140
Great Britain: Chancellor of Exchequer's announcement
in House that joint statement would be published
as White Paper on the following day, and discussion
following, reported by Treasury representative
Casaday - 4/26/44
210
Acheson, HMJr, Collado, White, and Luxford have
luncheon conference - 4/28/44: See Book 725, page 32
a) Delegates discussed
FDR-HMJr correspondence concerning arrangements -
4/28/44: Book 725, page 43
a) Hull informed: Book 725, page 46
Winant reports British will need more time before
conference: Book 725, page 47
a) Date discussed by Treasury group - 4/29/44:
Book 725, page 117
b) Winant-HMJr conversation: Book 725, page 120
c) Cable to Winant saying Russians have accepted;
waiting only for British now - 5/3/44:
Book 727, pages 24,31,48,50
Publicity at conference discussed in Smith memorandum:
Book 725, page 50
Conference; present: HMJr, Lord Halifax, Opie. and
White - 5/4/44: Book 727, page 143
a) Chancellor of Exchequer's message delivered:
Book 727, page 149
Halifax-HMJr conversation: Book 727, page 150
a) Brand-Lasard Freres connection discussed
Procurement Division and. : Brand will apasent birtish Transmy 5/15/44/33. 140,145
Surplus Property, Disposal of
Fiscal year report through April 15, 1944 - 4/24/44
3
Brill, 1. W., in charge of drug, surgical, and
hospital supplies; Belland, C. H., in charge of
textiles - 4/24/44
10
Foreign Economic Administration-Procurement to conduct
joint study before taking over from Surgeon General
the Lend-Lease purchasing. warehousing, and
packaging of medical supplies for civilian distribution
abroad - 4/24/44
11
Bicycles: 10,929 declared surplus - 4/26/44
185
Army Shoes: Rebuilding of 1,200,000 pairs for use in
Liberated Areas discussed in Mack memorandum -
4/27/44
285
Motorcycles: Sale of 4,500 reported - 4/27/44
309
Public Works
See War Production Board
- R -
Book Page
Revenue Revision
Tax Simplification
Doughton and George thanked for cooperation - 4/27/44.. 724 231,235
a) Doughton's attitude toward Treasury staff - -
Blough memorandum
238
b) Doughton's letter (copy to FDR) - 5/2/44:
See Book 726, page 180
c) Treasury reply to Doughton: Book 727, page 75
Young & Rubicam's contribution discussed by 9:30 group -
5/3/44: Book 727. page 14
- S -
Schram, Emil (President, New York Stock Exchange)
Salary increase may be approved - 4/27/44
306
(See also Book 729, page 124 - 5/6/44)
Conference on Sullivan memorandum; present: HMJr and
O'Connell - 5/10/44: See Book 730, page 160
a) O'Connell suggests memorandum to Nunan saying
he sees no reason for increase
b) Memorandum to Nunan: Book 730, page 164
Shoes, Army
See Procurement Division: Surplus Property, Disposal of
Sweden
of
See also War Refugee Board
Small Savings Government methods of borrowing - 4/24/44..
28
- T - -
Taxation
See Revenue Revision
Taylor, Myron C.
See War Refugee Board
- U -
U.S.S.R.
See Lend-Lease
United Kingdom
See Post-War Planning: Currency Stabilization
- W -
War Department
See Financing, Government: War Savings Bonds
(5th War Loan Drive)
- W - (Continued)
Book Page
War Production Board
Public Works: Volume and reason for at this time covered
in Haae memorandum - 4/26/44
724 188
War Refugee Board
4th meeting - proposed minutes of - 4/24/44
36
a) Taylor, Myron C.: FDR informed of present relations
with Board - - 4/24/44
39
b) Sir Herbert Emerson-Pehle conference - 4/24/44
41
Latin American countries informed of Vatican's attempts
to work out relief measures for Jews holding Latin
American documents and interned in Germany - 4/24/44
50, etc.
a) Switzerland: Minister Harrison, Bern, reports on
situation - 4/24/44
97
Portugal: Resume of situation - 4/24/44
60
Sweden:
#
#
.
.
74
Hungary: Text of United States appeal to the people to
aid the Jews "broadcast by Voice of America to Europe" -
4/26/44
199
Mexico: Possibilities of collaboration reviewed -
4/27/44
326
War Savings Bonds
See Financing, Government
1
1.A.HIRSCHMANN
743 LEXINGTON AVENUE
NEW YORK CITY 22
April 24,1944
Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
My dear Mr. Secretary:
I called your father as soon as I returned
to New York. last Friday. He remembered me
from our previous association and invited
me to come to see him at his home yesterday
(Sunday) at 4 P.M.
I want to thank you for the deep pleasure
and satisfaction that I derived from our
"re-union." It seems that my recent
activity 1s paying dividends in human
relations here which were an unforeseen
by-product. I do not have to tell you,
of all people, what a grand, mellow and
inspiring figure your father 18. I was
moved by our conversation which was
concerned mostly with the subject of
human beings who are activated by unselfish
motives, and the field of human welfare.
I understand that on Wednesday he will
celebrate his 88th birthday. That should
2
I.A.HIRSCHMANN
743 LEXINGTON AVENUE
NEW YORK CITY
page two
Honorable Henry Morgenthau, Jr.
April 24, 1944
be a wonderful occasion for you and I
send my felicitations to you and to him
in advance. Thank you for making it
possible for me to see him.
I need not tell you how much it meant
to me to have your encouragement in
my efforts toward the program of the War
Refugee Board, for which IT instrument"
I understand you are largely responsible.
With warm personal regards,
Cordially yours
iah:ret
I. A. Hirschmann
3
VICTORY
TREASURY department
BUY
VOITED
STATES
WAR
PROCUREMENT DIVISION
WASHINGTON 25
OFFICE OF THE DIRECTOR
April 24, 1944
m
MEMORANDUM TO THE SECRETARY:
From the beginning of this fiscal year through April 15,
1944, there was declared to the Procurement Division surplus
property amounting to $115,432,883.11. Disposals during
that period totaled $78,103,186.61.
Pending the completion of the detailed inventory system,
a listing of the principal items available for sale has been
prepared and is attached hereto, which list does not include
items in process of transfer to a Governmental agency or
public sale. A tentative list has also been prepared of in-
dicated surplus property declarations by the War Department
in the near future which is subject to change, but provides
the best information now available.
Instructions have been issued to our regional offices
to concentrate upon the closing out of any remaining WPA or
NYA property which for the most part would be miscellaneous
items or buildings classed as personal property. We have also
told the field offices to start making checkups on NYA property
loaned to vocational institutions to make certain that it is
being used for the purpose loaned, and, if not, steps will be
taken to have such property withdrawn for use elsewhere.
your Clirton E. Mack
Director of Procurement
Attachments (2)
Regraded Unclassified
April 21, 1944
4
SURPLUS PROPERTY
AVAILABLE FOR DISPOSAL
Item
Quantity
Value
Air Conditioner
1 Each $
1,449.
Airplane Tape
1 Lot
1,500.
Airplane Parts
2 Lots
99,200.
Aluminum Sheets and Rods
1 Lot
6,000.
Asbestos
1,400 Sheets
2,800.
Ambulance Bodies
187 Each
50,213.
Abrasive Cloth
1 Lot
14,553.
Alarms and Gas Masks
3,252 Units
6,218.
Albums, Photoprint
2,648 Each
11,529.
Bicycles
10,929 Each
303,259.
Blowers
11 Each
550.
Boxes
Ice
1,396 Each
144,648.
Wood and Cardboard
1,334,446 Each
4,807.
Liners for
4,034 Each
298.
Bolos
is
376 Each
1,443.
Bolo - Scabbards
4,091 Each
6,831.
Batteries
6,863 Each
686.
Bags
3,759,878 Each
282,252.
Bolts
1 Lot
5,077.
Beds
4,551 Each
62,205.
Construction Equipment
Including - Tractor, Mixers,
Graders, Rippers, Hoppers,
Power Shovels, Vibrators,
Finishers, Crushers, Conveyors,
Cranes, Pumps, Compressors, etc.
208,228.
Cuspidors - Steel enameled
72,784 Each
29,103.
Coal
1,700 Ton
11,900.
Cement
1,800 Bags
1,710.
Couplings - Gasoline Hose
1 Lot
25,349.
Chemicals
Metallic Mercury
20,016 Lbs.
56,044.
Decontaminating Agent
1 Lot
66,074.
Simulated Agents
264,721 Pkg.
74,175.
Silicate of Soda
4,216 Lbs.
37.
Pyrethum Solution
2,500 Gal.
14,625.
Arabic Gum
61,500 Lbs.
18,867.
Aromatic Naptha
143,152 Gal.
42,945.
Potassium Metabisulphite
23,800 Lbs.
8,925.
April 21, 1944
5
-2-
Item
Quantity
Value
Chemicals - (continued)
Potassium Dichromate
37,776 Lbs.
$
12,088.
Sodium Hyposulphate
57,400 Lbs.
1,549.
Sodium Phosphate
455,175 Lbs.
12,620.
Sodium Chromate
72,300 Lbs.
15,833.
Salicylic Acid
3,536 Lbs.
2,121.
Calcium Carbide
478,700 Lbs.
19,148.
Diethyeene
9,569 Gal.
12,248.
Ether
13,060 Qts.
10,448.
Potassium Sodium
56,800 Lbs.
22,720.
Blue Indigo Dye
11,646 Lbs.
8,275.
Equipment - Including-
Drafting, Electrical, Duplicating,
Photographic - Various
1 Lot
710,987.
Equipment - Industrial
1 Lot
25,000.
Expansion Joints
159 Each
14,500.
Furnaces - Tempering - Electric
2 Each
15,800.
Furniture - Office
77,643.
Harness
1 Lot
4,500.
Hose - Gasoline
1 Lot
94,904.
Hardware
Hinges
92,700 Pcs.
922.
Latches
25,500 Pcs.
739.
Angle Irons
546,192 Pcs.
1,665.
Leather Tabs
35,194 Pcs.
211.
Rivets
2,557,400 Pcs.
2,325.
Washers
84,881,221 Each
102,397.
Screws
500 Ton
879,602.
Instruments - Drawing
38 Sets
760.
Logs
130,000 FBM
3,900.
Lumber - Salvaged, Rough
778,126 FBM
21,703.
Lanterns
1,405 Each
2,726.
Lamps - Tail
320 Each
160.
Lubricants
1 Lot
777,971.
Machines, Kitchen
11 Each
7,680.
Machines, Imprinting for
Identification tags
15,000 Each
479,900.
Motors, Electric
4 Each
5,240.
April 21, 1944
6
-3-
Item
Quantity
Value
Motor Vehicles - Etc.
Trucks
3,407 Each
$
1,368,150.
Automobiles
349 Each
117,803.
Busses
9 Each
6,850.
Motorcycles
17 Each
2,000.
Trailers
45 Each
10,660.
Medical Supplies and Equipment
Disinfector
1 Each
2,200.
Sterilizer
7 Each
525.
Medicinals
1 Lot
485,649.
Dental
1 Lot
17,000.
Rubber Gloves
1 Lot
7,945.
Parts
Tractor
1 Lot
500.
Automotive
3 Lots
12,325.
Presses
9 Each
5,330.
Photographic Equipment
1 Lot
2,000.
Paint
1 Lot
63,508.
Propane-Gas
337,640 Lbs.
1,688.
Propane-Gas-Cylinders
9,441 Each
264,348.
Rubber Sheets
1 Lot
700.
Sprayer - Power
1 Each
119.
Stands - Assemblies - Engines
13,346 Each
491,460.
Signal Corp Equipment
1 Lot
3,371,245.
Supplies
Electric and Plumbing
9 Lots
86,176.
Office
Lot
155,830.
Steel Products
1 Lot
22,000.
Steel Stretchers
748 Each
4,413.
Stoves
25,211 Each
106,864.
Shearlings - Sheet
8,059,154 Sq. Ft.
3,942,246.
Sacks, Pillow
1,132 Each
328.
Tools - Etc.
Hand
2 Lots
3,700.
Machette
146 Each
182.
Handles
16,150 Pcs.
1,900.
Textiles
1 Lot
285,935.
Transformers
4 Each
883.
Valves
10 Each
4,300.
April 21, 1944
7
-4-
Item
Quantity
Value
Welders
2 Each $ 25,666.
Wearing Apparel
Clothing
1 Lot
479,124.
Boots and Shoes
193,570 Pr.
792,268.
Wire
1 Lot
81,277.
Total
$ 16,636,882.
April 21, 1944
8
TENTATIVE SCHEDULE OF PROPERTY TO BE DECLARED SURPLUS BY THE WAR
DEPARTMENT DURING THE COMING MONTHS
(CONDITION AND VALUE UNKNOWN)
Item
Quantity
Mattress, cotton
1,750,000
Comforter, cotton-filled
1,250,000
Pillow, feather
1,500,000
Bedstead, wood, double decking type or cot,
fldg., steel
1,600,000
Bar, mosquito
1,500,000
Rod, bar, mosquito
1,400,000
Locker, box
700,000
Pillowcase
2,000,000
Adaptor, cot, folding, steel
150,000
Table, office, wood
1,000
Stand, typewriter, wooden
2,500
Chair, typewriter
3,000
Cabinet, card size, wood, 16", 3" X 5" and
5" X 8"
4,000
Bowl, general use, w/cover
100,000
Dish, vegetable, china
450,000
Saucer, tea or coffee, china
1,000,000
Bottle; vinegar, w/stopper
220,000
Shaker, pepper
150,000
Shaker, salt
150,000
Tumbler, glass
2,000,000
Pitcher, water
150,000
Platter, meat
100,000
Spoon, table, medium
400,000
Blade, saw, butchers', 22"
125,000
Block, butchers'
6,000
Bowl, mixing, large
15,000
Colander, retinned, seamless
25,000
Dipper, tin, 2 quart
30,000
Fork, cook, flesh, 15"
75,000
Fork, cook, flesh, 21"
75,000
Grater, vegetable
60,000
Griddle, cast iron ⑇ X 20" X 30"
25,000
Knife, bread, 10" blade
35,000
Knife, cooks', 12" blade
40,000
Ladle, 15" overall
230,000
Ladle, 21" overall
20,000
Masher, potato
60,000
Measure, lipped, ungrad. 1 pt.
100,000
Measure, lipped, ungrad. 1 qt.
80,000
Opener, can, mech. table type
5,000
Pan, bake and roast, 4" X 12" X 20"
60,000
April 21, 1944
9
Item
Quantity
Pan, bake and roast, 4" X 20" X 26"
65,000
Pan, dish, 21 qt.
20,000
Pan, fry, 12"
300,000
Pan, muffin, 12 cup
200,000
Pan, pie, 9"
500,000
Pin, rolling, 3 3/4" X 23"
100,000
Pot, stock, w/cover, 15 gal.
10,000
Saw, butcher, 22" blade
10,000
Scraper, dough, 6"
15,000
Skimmer, 15" overall
25,000
Spatula, wood, 37"
10,000
Spoon, basting, 15"
100,000
Spoon, basting, 21"
115,000
Spoon, serving, slotted
40,000
Tongs, ice
20,000
Whip, egg, 12"
70,000
Whip, egg, 16"
110,000
Cart, hand
3,500
10
ICTORY
TREASURY DEPARTMENT
BUY
PROCUREMENT DIVISION
WASHINGTON 25
FICE OF THE DIRECTOR
April 24, 1944
MA
MEMORANDUM FOR THE SECRETARY:
Mr. F. W. Brill and Mr. C. H. Belland were
added to the surplus property organization.
Mr. Brill will specialize in drugs, surgical equip-
ment and hospital supplies, and Mr. Belland in
textiles.
A conference was held with General Hopkins who
is in charge of redistribution and salvage for the
Army Air Force for the purpose of discussing proce-
dures with regard to the disposal of surpluses
declared to us by that branch of the service.
your Clifton E. Mack
Director of Procurement
11
VICTORY
TREASURY department
BUY
WAR
PROCUREMENT DIVISION
WASHINGTON 25
FFICE OF THE DIRECTOR
April 24, 1944
MA
MEMORANDUM TO THE SECRETARY:
The Foreign Economic Administration has asked that
we conduct a joint study with them preparatory to taking
over from the Surgeon General, the Lend Lease purchasing,
warehousing and packaging of medical supplies intended
for civilian distribution abroad.
Under the present operation the purchasing is con-
ducted in New York and the warehousing and packaging are
combined with that of the military at Louisville, Kentucky.
At Louisville, the military has personnel of 1200 and
space representing 1,700,000 square feet. Approximately
25% of the personnel and material involved in this operation
represents Lend Lease operation.
A study is now being conducted jointly with the
Foreign Economic Administration, the Surgeon General and
Procurement for the purpose of determining whether this
operation should be continued at Louisville or should be
transferred to Chicago at which point the Surgeon General
is now considering abandoning an operation of this type
which has heretofore been devoted fully to military.
Involved in the Chicago operation is a personnel of
approximately 375 and a warehouse consisting of 700,000
square feet.
It is proposed that the space and civilian personnel
at Chicago be made available to us for the Lend Lease operation
to the extent required.
Tlifton E. Mack
Director of Procurement
12
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
CONFIDENTIAL
DATEApril 24, 1944
TO
FROM
Mr. Hads
Secretary Rob Morgenthau
Subject: The Business Situation,
Week ending April 22, 1944.
Summary
Stock market: Stock prices declined on heavier trading volume
early last week as British restrictions on diplomatic communi-
cations increased tension over invasion prospects. Sales on
the New York Exchange on Tuesday rose above one million
shares for the first time this month, and despite a moderate
recovery in the latter part of the week, stock prices at
the close on Saturday were about 2 percent lower than a
week earlier.
Commodity prices: Nervousness over the approaching invasion,
together with other factors, has resulted in a noticeable
decline in futures prices during the past two weeks,
although the markets tended to firm in the latter part of
last week. The spot markets have shown only slight weakness,
with the BLS index of 28 basic commodities practically
unchanged.
Cost of living: Success in stabilizing living costs appears to
be continuing, with the BLS cost-of-living index in March
unchanged from the preceding month, according to confidential
figures. The cost-of-living indexes in the United Kingdom
and Canada have also continued to move sidewise.
Farm employment: The maintenance of an adequate labor force
remains an important farm problem, despite the protection
from the draft given to farm labor. Farm employment on
April 1 was the lowest on record for that date, 3 percent
below a year ago. Delay in planting resulting from the cold,
wet spring has tended to increase the concern felt in some
areas over the tight farm labor supply.
Steel operations: Following a record output of steel in the
first quarter of 1944, steel operations have shown further
gains in April. As a result of a rise in the operating rate
to 99.5 percent of capacity, the tonnage of steel ingots
scheduled for production last week equalled the previous
record high reached earlier in the month. The iron ore
shipping season has started earlier than last year, with the
first down-bound ore carrier clearing through the Soo 17 days
earlier than in 1943.
13
- 2 -
Invasion prospects unsettle stock market
Tension over invasion prospects, which has been a
restraining factor in stock market activities in recent
months, mounted early last week when British authorities
clamped down on diplomatic communications and travel to
prevent disclosure of invasion preparations. The announce-
ment of the British action unleashed heavy selling on
Tuesday, which carried transactions on the New York Stock
Exchange above the one-million-share mark for the first
time this month. (See Chart 1.) While all stock groups
were under pressure, railroad stocks led the decline with
a loss for the day of nearly 3 percent. Second grade and
defaulted railroad bonds also declined sharply. A
contributory factor in the weakness of railroad securities
was the issuance of a show-cause order by the ICC indicating
the Commission's intention to suspend for another 6 months
the freight rate increases granted in 1942.
After further moderate weakness on Wednesday, stock
prices strengthened somewhat in the latter part of the week,
but volume fell off on the rally. At the close on Saturday
the Dow-Jones price average of 65 stocks W&B 2 percent below
that of the previous Saturday. Industrial stock prices thus
far in 1944 have moved within a relatively narrow range, and
at the end of last week were only fractionally above the
level prevailing at the end of 1943. The dominant mood
of traders and investors at present continues to be one of
proneunced caution, with considerable bearishness evidenced
by the sharp rise in the short interest on the New York
Stock Exchange in recent months.
German bond prices decline in London
Meanwhile, industrial stock prices in the London market
have firmed slightly, and now stand very close to the high
for the entire war period. However, since Dunkirk the London
market on the whole has withstood war disappointments with
notable firmness.
Judging from the price movements of German bonds on the
London market, as pointed out in a recent article in Barron's
Weekly, British investors have considerably toned down last
summer's expectations of an imminent German defeat. Using
quotations of the German 5's of 1924 (originally issued as
the 7's of 1924 under the terms of the Dawes Plan) it was
noted that prices now are substantially lower than at the
time of the downfall of Mussolini, indicating less optimism
over the resumption of service on these bonds.
14
- 3 -
Quotations for the German 5's dropped to 4 with the
advent of war in 1939 and fluctuated between a high of 8
and a low of 3-3/4 in the following 2-year period. In
response to the strong Russian stand against the German
invasion, the bonds rose to 12 in November 1942, and then
turned down again as nervousness developed over the out-
come of the battle of Stalingrad and the North African
campaign.
In Chart 2, showing Thursday quotations of the German
5's of 1924 since the beginning of 1943, it will be noted
that, following earlier gains due to allied victories in
the spring, prices rose to 15 on August 5 and again on
September 9, reflecting optimism over Mussolini's overthrow
and Italy's unconditional surrender. However, the stiff
resistance encountered by the allied forces in Italy brought
a slump in prices to 8 by December 23, and after a moderate
recovery around the beginning of 1944 they slowly declined
to a low of 7 last week.
Invasion tension unsettles commodity markets
Recent nervousness on the approach of the European
invasion has also been apparent in the commodity markets.
Futures prices have sagged noticeably in the past two weeks,
although spot commodity prices have shown only slight weakness.
(See Chart 3.) Due largely to declines in grain and cotton
futures, the Dow-Jones futures index declined 1.1 percent
between April 10 and April 18, with particular weakness
evident on the latter date as a result of the British
announcement of restrictions on diplomatic communications.
The index, however, has firmed during the past few days.
Other factors than war developments have contributed to the
recent decline in futures prices, since improved crop prospects
and heavier imports from Canada have tended to weaken grain
futures, and rumors of a textile production freeze have
unsettled the cotton markets. Moody's spot index has shown
a very.slight decline in recent weeks, reflecting lower
prices for hogs and cotton.
The BLS index of 28 basic commodities, unchanged last
week, has moved within a very narrow range during the past
six weeks. (See Chart 4.) Rosin prices last week were
moderately lower and cotton prices registered & slight
decline, but these losses were offset by a rise in steer
prices. Spot grain prices continued firm around ceiling
levels. The commercial corn supply situation remains
critical, with marketings last week extremely light.
15
- 4 -
In the week ended April 15 the BLS all-commodity index
advanced slightly for the second consecutive week, but the
index remains within the very narrow range of the past year.
At 103.8 percent of the 1926 average, the index is only
0.3 percent higher than in the corresponding week of last
year, but it 16 38.4 percent above the pre-war level of
August 1939.
Cost-of-living steady
Success in the general stabilization of living costs
appears to be continuing, with the BLS cost-of-living index
in March unchanged from the preceding months, according to
confidential figures. The index 1s now 1 percent below the
peak reached last May and 18 only 0.8 percent above the
level of a year ago. Retail food prices and fuel and light
costs were slightly lower last month, but offsetting these
declines was a continued gradual rise in prices of clothing
and household furnishings, and in the cost of various
services.
Similar to the trend in this country, living costs in
the United Kingdom and Canada have continued to show very
little change. (See Chart 5, upper section.) The cost-of-
living index in Canada on March 1 was 0.3 percent below
the peak reached last September, while the index for the
United Kingdom on March 1 was at practically the same level
as three years ago. Although the United Kingdom was the
first to stabilize its living costs, nevertheless the cost-
of-living index in that country has shown the largest rise
since the war began--29.0 percent, as compared with 25.6 per-
cent in the United States and 18.1 percent in Canada. The
importance of food prices in the stabilization of the living
cost indexes is indicated by a comparison of the movement of
food prices in the three countries with the movement of the
cost-of-living indexes. (See Chart 5, lower section.)
Sharp drop in 8gg hatchings expected
A decline in egg production next year, and smaller supplies
of chickens this fall, are likely a.s a result of the sharp
reduction in hatchery production indicated for the next few
months. A special survey by the Department of Agriculture
reveals that 13 percent fewer eggs were set and 4 percent fewer
chicks hatched between April 1 and April 15 than during
the same period last year. Moreover, hatcherymen reported
that the output of chicks during April and May would be only
about two-thirds as large as in the same period last year.
16
- 5 -
Although hatchery production for the first three months of
this year was only slightly less than last year, the decrease
indicated for the remaining months of the hatchery season
would result in an 18 percent decline in production for the
first five months of this year. Many hatcheries are planning
to close one or two months earlier than last year.
The break in egg prices during the latter part of
March caused cancellation of many orders for chicks, and
an immediate slowing up in the demand for chicks. While
egg prices have strengthened in recent weeks, the egg-feed
ratio 18 not only below that of last year but is considerably
below the 1933-42 average. Feed prices have risen sub-
stantially during the past year while egg prices have declined.
Farm employment smaller
While the farm labor supply 18 largely protected from
the drastic inroads which the draft is making on industrial
labor, the maintaining of an adequate labor force continues
to be an important farm problem. Farm employment on April 1
was the lowest on record for that date, and was about 3 per-
cent below a year ago. Unpaid family workers, which comprise
about four-fifths of the total farm labor force, registered
only a slight decline from last year, but the number of
hired workers was over 10 percent lower.
Declines in farm employment are apparent in all sections
of the country except the Pacific Coast, where more than 20,000
Mexican importees have bolstered the farm labor force. The
delay in planting operations resulting from the cold wet
spring has tended to increase the concern felt in some areas
over the tight farm labor supply, particularly in the West
North Central region. In that area many young men, who are
competent operators of farm machinery, are preferring to go
into the armed forces despite the willingness of draft boards
to defer them.
Farm wage rates have continued their sharp rise of the
past three years and are now at an all-time high. The index
of farm wages of the Department of Agriculture on April 1
stood at 292 percent of the 1910-14 average, which 18 22 per-
cent higher than a year ago and 18 137 percent above the
1939 average.
Department store sales show seasonal decline
With the stimulating effects of pre-Easter and tax-
avoidance buying no longer operative, department store sales
have dropped sharply since the early part of the month.
17
- 6 -
Following a gain of 23 percent over year-earlier levels
in the week ended April 8, sales showed a year-to-year
decline of 11 percent in the week ended April 15. (See
Chart 6.) However, since Easter last year occurred two
weeks later, sales last year were still enjoying the benefit
of pre-Easter buying, and, the recent unfavorable sales
comparison therefore has little significance.
Preliminary reports from the New York area indicate
that department store sales last week recovered from the
post-Easter decline, and were actually running moderately
above the 1943 Easter week. It was also reported that
despite higher excise taxes, consumer demand for jewelry
and handbags continued active, although cosmetic sales were
still showing the adverse effects of last month's heavy
anticipatory buying.
Steel production at record levels
Despite manpower difficulties and earlier fears of
production losses due to cutbacks in war orders, the steel
industry continues to operate at record levels. Operations
last week advanced to 99.5 percent of capacity, thus equalling
the year's high reached earlier in the month. On a tonnage
basis this 18 the highest level ever attained in the steel
industry.
Due to the expansion in capacity in recent years, the
steel industry's production record thus far in 1944 has been
even more significant than the near-capacity operating rates
would indicate. The tonnage of steel produced in the first
3 months of this year has consistently run above year-earlier
levels. (See Chart 7, lower section.) Further evidence of the
fast pace of steel operations 18 seen in the fact that finished
steel shipments of the United States Steel Corporation in
March were the highest for any month in the company's history.
Demand for steel plates for invasion purposes recently
has been especially heavy, and March output of plates broke
all previous monthly records. Among other items, demand for
shells, particularly the heavier sizes, is said to have in-
creased, while the Iron Age in its latest weekly steel trade
summary comments that delivery promises and rolling mill
schedules seem to be growing tighter steadily.
18
- 7 -
Iron ore shipping season opened
Confronted with a 1944 shipping quota of 90 million
gross tons of iron ore, the current ore shipping season on
the Great Lakes got under way in earnest on April 12 with
the passage of the first down-bound vessel through the
locks at the Soo. This was 17 days earlier than last year,
when unfavorable weather conditions caused lake shipping
to get off to a late start. Ore shipments have already
arrived at Lower Lake ports and hopes are held for a record
shipping movement in 1944, providing manpower shortages do
not interfere.
The ODT announced last week that 95 percent of all
ships on the Great Lakes were moving on schedule fully
manned, although difficulties in obtaining skilled and
experienced men were indicated. On April 1, iron ore stocks
at furnaces and Lower Lake ports were nearly 4 million tons
below last year's level, but the total of 21.3 million tons
was equivalent to almost 3 months' supply at the March
consumption rate.
Chart 1
19
STOCK PRICES, DOW-JONES AVERAGES
Daily
1943
1944
DEG.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
8
12
19
as
I
9
IS
ES
30
6
IS
to
E7
6
12
IS
26
#
9
16
23
30
7
14
24
28
4
"
=
28
DOLLARS
DOLLARS
155
155
30 Industrial Stocks
150
150
145
145
140
140
135
135
130
130
125
125
120
120
40
40
38
20 Railroads
38
36
36
34
34
32
7"
32
30
30
24
24
15 Utilities
22
22
20
20
18
18
SHARES
SHARES
Millions
Volume of Trading
Millions
2
2
I
I
o
o
so
7
14
24
20
4
II
18
=
B
is
19
as
=
.
HI
ES
30
4
IS
20
E7
5
12
-
a
:
9
16
25
DEC.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
1943
1944
- of to Bantary of be Transy
P-IM-L
- - - - -
Regraded Unclassified
PRICE OF GERMAN 5s 1924 AT LONDON
Thursday Quotations, January 1943 to Date
POUNDS
POUNDS
STERLING
STERLING
18
18
SEPT. 8
SURRENDER
OF
ITALY
NOVEMBER
16
GERMANS STALL
16
ALLIES IN ITALY
14
14
12
12
JULY 25
MUSSOLI INI
OUSTED
10
10
8
8
MAY 7
FALL or TUNIS
AND BIZERTE
6
6
4
4
2
2
0
0
JAN.
MAR.
MAY
JULY
SEPT.
NOV.
JAN.
MAR.
MAY
JULY
SEPT.
NOV.
Chart 2
1943
1944
Office of the Secretary of the Treasa
F0-170 2
Division of Research and Statesher
Regraded Unclassified
COMMODITY PRICE INDEXES IN U.S.
1943
1944
DEC.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
PERCENT
PERCENT
(Dow-Jones)
(Moody)
Daily
104
270
103
267
102
264
101
261
100
258
Moody's Index
255
in U.S.
99
December 31,1931=100
98
252
97
249
96
246
Commodity Futures
95
243
(Dow-Jones)
1924-26-100
94
240
93
237
92
234
91
231
90
228
Chart 3
89
225
30
16
a
-
-
25
I
-
15
22
-
5
=
is
=
4
II
-
ES
-
.
a
=
=
6
IS
20
ET
3
IO
17
24
I
.
15
##
29
5
IE
e
26
=
,
is
ES
7
4
⑉
DEC.
JAN.
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
1943
1944
Other of the Secretary of the Transy
P-148-L-I
- of - - -
21
Regraded Unclassi
MOVEMENT OF BASIC COMMODITY PRICES
1942
1943
1944
PERCENT
PERCENT
AUGUST 1939 - 100
220
220
210
210
9 Uncontrolled Commodities
As of February 1942
200
200
190
190
28 Commodities
180
180
170
170
19 Controlled Commodities
160
160
DEC.
FEB
APR.
JUNE
AUG.
OCT
DEC.
FEB
APR.
JUNE
1942
1943
1944
PERCENTAGE CHANGE DEC. 6, 1942 TO APR. 14, AND APR. 21, 1944
PERCENT
PERCENT
19 Controlled
9 Uncontrolled
Borley 760%
Commodities
Commodities
* 70
+70
(Flamed 646%
Ronia 62.0%
+ 60
+60
Care 569%
+ 50
22
+ 50
theet 44.6%
. 40
+ 40
Hoge 380%
Lard 10.0%
+ 30
Sheller 12.3%
+30
Load 111%
Seper 6.9%
Collenseed Oil 6.3%
Steere 265%
Print Claim 4.9%
207%
+20
+20
Burlep 2.6%
Weel Tops 19%
Zine 3%
Buffer 10.8%
0% Change
+ 10
+10
Hides, SM,
Tim, Rubber,
Coffee, Capper,
St. Seran does,
o
o
St. Scrap.exp.
Cacoo
Tellew
IN
- 10
... 10
Dec. 6.
Apr. и
Apt 21
Dec. 6.
Apr.14
Apc21
1944
1944
1941
1944
1944
1941
"All commodities in index are - under - form of price control, except roale and cotton.
Office of the Secretary of the Transery
P-244-B
Date -
Regraded Unclassified
Chart 4
Chart 5
23
CONFIDENTIAL
COST OF LIVING, U.S., U.K. AND CANADA
August 1939-100
1939
1940
1941
1942
1943
1944
PERCENT
PERCENT
135
Cost of Living
135
U.K.
(Min. of Labor)
130
130
125
125
120
120
115
115
Canada
(Dom. Bur. of Stet.)
110
110
U.S.
(8. L.S.)
105
105
100
100
95
95
JASOND
PERCENT
PERCENT
155
Foods, Retail
155
150
150
145
145
140
140
135
135
130
130
U.K.
(M/n. of Labor)
125
125
Canada
(Dom Bur of Stat.)
120
120
115
115
U.S.
(B.L.S.)
110
110
105
105
100
100
95
95
1939
1940
1941
1942
1943
1944
Offes of the Secretary of the Treasury
- of - - -
0-486-A
Chart 6
24
DEPARTMENT STORE SALES
1935-39 . 100. Unadjusted
PERCENT
PERCENT
300
300
Weekly
280
280
260
260
240
240
220
220
200
200
180
180
160
1944
160
1943
140
140
120
120
1942
100
100
80
80
60
60
JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT NOV. DEC.
Office of the Secretary of the Treasury
Division of Research and Statistics
C-390-0
Regraded Unclassified
Chart 7
25
STEEL INGOT PRODUCTION
PERCENT
PERCENT
Percent of Capacity
1943
1942
100
100
1940
1944
90
90
80
80
70
70
60
60
JAN.
FEB
MAR
APR.
MAY
JUNE
JULY
AUG.
SEPT.
OCT.
NOV.
DEC
NET TONS
NET TONS
Millions
Millions
Tonnage
8
8
1944
1943
7
7
1942
6
6
1940
5
5
4
4
3
3
JAN
FEB.
MAR.
APR.
MAY
JUNE
JULY
AUG.
SEPT
OCT.
NOV.
DEC.
Source: American Iron and Steel Institute
Office of the Secretary of the Treasury
Division of and Name
C-532
Regraded Unclassified
26
M
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Statement for the Press
For immediate release
April 24, 1944
STATEMENT OF MARRINER S. ECCLES, CHAIRMAN OF THE BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM, ON THE PROPOSAL OF THE TECHNICAL EXPERTS REPRESENT-
ING THIRTY-FOUR NATIONS FOR AN INTERNATIONAL STABILIZATION FUND
International economic cooperation in the trying postwar period
is a matter of great significance for postwar presperity. It is EL matter
of no small consequence that agreement of technical experts representing
thirty-four nations on international collaboration has been achieved.
Federal Reserve technicians have participated in the discussions
from the beginning, and Federal Reserve authorities, in view of their re-
sponsibilities relative to credit conditions in this country, have a great
interest in the effect of any arrangements relating to currency stabilization.
It is understood that no governments are committed by the action
of the technicians. It now becomes necessary for the executive branch of
the Government to consider the proposal of the technical experts and to
determine what course of action in this matter should be undertaken and
ultimately what program should be recommended to Congress.
Regraded Unclassified
27
APR 24 1944
Dear Gile
It is very gratifying that an agreement has at last
been reached between the British and American technicians
on the basic principles for an International Monetary Fund.
Year aid in the attainment of this goal has been very
valuable and I wast to express By thanks for your efferts
in ackieving this important stop forward.
Progress - this project will, I believe, be are rapid
from now an. I have just returned from the Congressional
Committees where 11 seened that matters proceeded favorably.
It will also be of interest to you that this norming we
received a favorable eable free Harrinan.
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
The Nescrable John 0. winant,
American Ambacander,
Lendon, England.
DFR:sh
4/22/44
Regraded Unclassified
28
TREASURY DEPARTMENT
M
INTER OFFICE COMMUNICATION
DATE APR 24 1944
TO
FROM
Mr. Haas
Secretary MR Mergenthau
Subject Swedish Government Methods of Borrowing Small Savings
In response to your request for data on Swedish small
savings securities and lottery plans, the Embassy in Stock-
holm has cabled us rather complete information about the
former, but somewhat less complete material about the latter.
State Savings Accounts and Savings Certificates
It appears that the article in the Economist, which
Mr. Bell read to you (and a copy of which 1s attached) erred
in reporting that no interest 18 paid on State savings accounts
unless the deposit remains undisturbed for six years. The
facts are that such deposits receive a maximum interest return
of 3.5 percent per annum at the end of six years; and, for
periods of less than six years, interest is paid on a gradu-
ated scale, starting at the end of the seventh month. The
deposits are noninterest-bearing after six years.
The response to this plan has been limited, probably
because there are also available savings certificates similar
to our Series E bonds. About 1 million kronor (approximately
$250,000) had been deposited in these accounts at the end of
January 1944. (The system was inaugurated in 1943.) Approxi-
mately 85 million kronor ($21 millions) are outstanding of
the two issues of savings certificates, introduced in 1940
and in 1943.
These certificates are similar to our Series E savings
bonds. They are purchased at prices which are 80 percent
of their maturity value and are redeemable before maturity
at values less than their maturity value. The yield to
maturity is 3.75 percent on the 1940 series which has a
term of six years, and 3.46 percent on the 1943 series
which matures in six and a half years.
Regraded Unclassified
29
Secretary Morgenthau - 2
Lottery Plans
Such plans have been extremely popular in Sweden, with
the popularity closely related to the number of prizes. The
interest cost has varied according to the rate deemed necessary,
at the time of the offering, in order to attract potentially
inflationary funds. The cost is somewhat higher than the
State pays on ordinary long-term loans, but this 18 considered
justifiable since the sole purpose 18 to combat inflation.
The most specific information we have concerns two issues
of 150 million kronor (about $37 millions) each offered in
1942. The interest cost on these issues is approximately
3.3 percent, apparently paid entirely in the form of prizes
(although the Economist reported that 2.1 percent was paid
in the form of regular interest). The top prizes in the semi-
annual drawings include one of 250,000 kronor (about $62,000),
one of 100,000 kronor, and two of 50,000 kronor each. These
bonds have no maturity or redemption date, but can be called
at par on three months' notice, after the lottery drawing in
November 1952.
Attachment
UUnclassified
30
Swedish Credit Policy
The latest annual report of the Svenska Handelsbanken
to reach this country throws interesting light on the credit
policy by which Sweden has endeavored to insulate herself
from the inflationary impact of the belligerent world around
her. The main potential of inflation in Sweden has been the
volume of foreign -- especially German -- purchases, the in-
ability to import goods to a corresponding extent, the con-
sequent increase in the gold and foreign exchange reserve of
the country, and the volume of additional currency and credit
built up, largely by external expenditure and backed not by
additional goods, but by these metallic and paper assets of
the Riksbank. To counter these inflationary forces the
authorities in Sweden have adopted all the correct orthodox
devices, plus a few of questionable orthodoxy, but undoubted
efficacy. The main task has been that of mopping up redundant
purchasing power. In the first place, the Government has bor-
rowed above its ourrent needs, and has done Bo by raising the
price of its borrowing slightly above the market rates current
when the new operations were launched. The Riksbank has re-
quisitioned some Kr. 500 millions of Treasury bills from the
National Debt Office and has used these as a fund for feeding
open-market sales of &curities. Government expenditure has
been reduced whereever possible, and by postponing Government
payments under supply contracts forced loans have, in effect,
been extracted from the contractors concerned. The sale of
Government securities outside the banks has been encouraged
and, as a stimulus to the canalisation of 8. larger flow of
savings to the Government, the National Debt Office has
created a new type of savings account, on which 3-1/2 per cent
interest 1s paid provided the deposit remains undisturbed for
at least six years; if it is withdrawn before that period has
expired the holder gets no interest and 1s charged 2 per cent
of the amount withdrawn.
Another Premium Loan
The most interesting of the unorthodox anti-inflationary
devices has been the issue of a Government Premium loan. The
total interest cost of the loan to the Government is 3.3 per
cent. of this, 2.1 per cent is paid by way of interest and
the balance is distributed as prizes for which periodical
drawings are made. The initial amount of this loan was Kr. 150
million, but such was the public response to it that this total
Was doubled. The popularity of the issue may be gauged by the
31
- 2 -
fact that since the lists were closed the Kr. 50 bonds of
the loan have risen to a premium. The second part of the
loan was actually issued at the price of Kr. 52. The response
to the loan was such that the National Debt Office had to
institute a rationing scheme which prevented a single sub-
scriber buying up a whole series of Kr. 100,000.
Source:
The Economist - February 19, 1944
Pages 250 - 252
OFFICE OF
32
THE SECRETARY OF AGRICULTURE
o
April 24, 1944
Mr. Morgenthau:
Here is a revision of the former draft,
after incorporating some suggestions from
recipients.
M.E.
M. Ezekiel
4-27-44
copy to m Pehle
in while
Draft - 4/21/44
33
to THE PEOPLES ENSLAVED If DICTATORS:
This statement is issued jointly w the lenders of England, the
Seviet Union, and the United States, after consultation with one another:
To the peoples of Germany, Japan, their allies, and to all peoples
of nations occupied by them, we say:
I. We are fighting to destroy the dictators who have enclaved you.
Ve are not fighting to destroy the people whom they have enslaved
and appressed all over the world.
II. We will fight until the dictators have surrendered unconditionally.
III. After the distators surreader. ve vill start at once to help you
reconstruct a world in which you and your children can live with
dignity. homer, presperity, and freedom.
IV. To this end we will ... that those political parties which have
supported the dietators and which have preached destruction, hate,
and emalavement, are rected out and rendered harmless. All indivi-
duals is those parties who have been responsible for crimes of
terrerion and destruction will be punished by courts of the areas
where their erimes were committed. They will be held in the
eastody of the armies of occupation until local governments and
courts capable of dealing with them have been reestablished by
democratic processes.
V. He member of the Fascist parties shall be permitted to retain
property which has been leoted from you. Se far as possible, that
property will be returned to responsible lecal governments for
distribution among these from whom the Fasciate stale it.
VI. As premptly as Fascist elements have bom eradicated, you will be
given the opportunity to establish local government organs by
demeeratic processes, for municipalities. towns, villages, and
countice.
VII. In the course you vill be permitted to establish whatever form of
national government yes solect 00 long as 10 10 based on the will
of the people, provides for free elections. free speech, and
religious freedem of wership, and insures against the creation of
new distatorships.
VIII. You vill be aided to resotablish your production of feed and
Regraded Unclassified
34
- 2 -
Regraded Unclassified
VIII. (Continued)
industrial preducts as promptly as possible after the fighting
steps. Relief feed will be provided to check actual starvation,
but after that your future feed supply will depend largely on
your ova efforts. We will do all that 10 necessary to assist you
in the rehabilitation of your agriculture, industry, and trade
as promptly as possible.
IX., The United Nations will operate the railreads and other transporta-
tion in your area under common United Nations' control until more
permanent forms of organizations have been developed. When you have
ostablished responsible governments, you will be given opportunity
to permicipate as one of the United Nations in the direction of these
and other United Nations' activities.
X. We recognise that if the world is to be peaceful in the future, 10
must also be presperous, and we undertake to see that the necessary
stops are taken after the war so that the citizens of each nation
will have the opportunity to earn presperity.
II. To this end we will see -
1. That no nation is barred from due access to the now materials
of the world.
2. That no nation 10 barred from ROCOSS to the markets of the world.
3. That under-developed nations. or those which have hitherte been
exploited for the benefits of others, will be afforded the oppor-
tunity to industrialise their own 00020MY and develop their
resources for their ova benefit as vell as these of other countries,
and will be assisted in establishing a decent social order.
4. The United Nations are nov is the process of developing organs
of international sellaboration and assistance in the fields of
relief, agriculture, labor. memetary stabilization, and long-
time finance. In due course, when your nation qualifies as a
nember of the family of nations, you will be able to join these
organisations as one of the participating United Nations.
III. It is recognised that the peoples of all nations have a common inter-
est which can not be disregarded without adversely affecting the most
favored. Our ultimate goal is to establish a world order consisting
of a family of nations, each having due regard for the velfare and
rights of the others.
35
- 3 -
Regraded Unclassified
to the peoples of Corner, Janan, and their allies, we sex:
We resegnize that you have been misled or encloved by the Fascist
dictators and the groups around them. The promises just made apply to you
as well as to the people of other nations.
XIII. After you have resetablished the functioning of your industry and
agriculture, you will be expected to aid in the rebuilding of those
portions of the countries which your present rulers have devastated.
IIV. Ye hereby enter a soleum undertaking, however, that the burdens of
reparation which may be laid upon you and the financial arrangements
Accessary in the handling of those reparations will not be made so
heavy that it will not be possible at the same time for you to create
a prosperous life for yourselves, and one which, within a limited
course of years. can leave you free to establish higher levels of
prosperity, and better standards of living for yourselves than you
had known before the war.
IV. As we have already agreed at Moscew, an International Security organi-
sation will be established. Among other points, this security organi-
sation will see that the arms industries are not reestablished in any
of your countries during such period as there is any danger that they
night again threaten the peace or stability of the world. When you
have demonstrated your right to that privilege. however, your nation
will be permitted to participate as one of the United Nations in
developing the bread policies for international security.
XVI. As this International Security Organization demonstrates its ability
to maintain penso and security is the world, it is our intention
gradually to reduce our armed forees. That reduction of force this
time will come after, insteed of before, the world has become pro-
tested from future aggressors.
36
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE BOARD
H
WASHINGTON 25, D.C.
APR 24 1944
OFFICE OF THE
EXECUTIVE DIRECTOR
My dear Mr. Secretary:
I am forwarding to you herewith
the proposed minutes of the fourth meeting
of the War Refugee Board.
The approval of these minutes
will be on the agenda for the fifth meeting
of the Board.
Very truly yours,
Executive Director
Maulc Pehle
The Honorable
The Secretary of the Treasury
Enclosure
Regraded Unclassified
37
MINUTES OF THE FOURTH MEETING OF THE
WAR REFUGEE BOARD
Held in the Office of the Secretary of State, 9:30 A. M.,
Thursday, April 20, 1944.
Present: Secretary of State Hull (acted as Chairman)
Secretary of the Treasury Morgenthau
Special Assistant to the Secretary of War
Bundy (for Mr. Stimson)
Myron Taylor, American Representative on
the Inter-Governmental Committee
Sir Herbert Emerson, Director of the Inter-
Governmental Committee
Robert Pell, Special Assistant to the Director
of European Affairs, State Department
John W. Penle, Executive Director, War Refugee
Board.
The fourth meeting of the War Refugee Board was an
extraordinary one called on the occasion of Sir Herbert
Emerson's visit to the United States.
Mr. Taylor explained the circumstances under which
Sir Herbert Emerson had been invited to come to the United
States to confer with the War Refugee Board on our mutual
spheres of influence. Sir Herbert made a statement indi-
cating that he had had very friendly and helpful discus-
sions with Pehle and his staff and had arrived at mutually
satisfactory arrangements. Pehle endorsed this statement
and stated that Sir Herbert and he were prepared to agree
in writing on the respective areas of operation of the
two organizations. The Board was pleased that the matters
had been satisfactorily adjusted.
Mr. Taylor raised the matter of the financing of IGC
operations. He explained that the United States was com-
mitted to provide $2,000,000 to the Inter-Governmental
Committee of which only some $200,000 had been called for
and provided to date. He also explained that in addition
the British Government had recently offered to put up one
and one-half million pounds if this Government provided an
equivalent amount; these funds would be used for operations
Regraded Unclassified
38
- 2 -
in enemy and enemy-occupied territory on a. "credit" basis.
It was agreed that this Government ought to provide the
additional amount still owing under our $2,000,000 commit-
ment as promptly as needed by the IGC, and perhaps at the
same time indicate that, if needed, additional funds
equivalent to that furnished by the British would be forth-
coming.
Regraded Unclassified
39
APR 24 1944
My dear Mr. President:
You will recall that, at the time of
the creation of the War Refugee Board, Myron
Taylor was somewhat disturbed about the confusion
and difficulties that might arise in relations
between the new Board and the Intergovernmental
Committee on Refugees. In view of his perturbation
at that time, you may be interested in learning
the most recent developments.
As a result of a talk I had with
Mr. Taylor, Sir Herbert Emerson, Director, and
Mr. Patrick Malin, Vice Director of the Inter-
governmental Committee, came to Washington to carry
on conferences with Mr. Pehle and to meet with the
Board. These meetings have been extremely cordial,
a complete agreement has been reached on relations,
Regraded Unclassified
40
- 2 -
and the future seems most promising. In a recent
conversation with me, Mr. Taylor has expressed his
complete satisfaction at the way the whole matter is
progressing.
Faithfully yours,
(Signed) H. Mergenthau, "
Secretary of the Treasury.
The President
The White House.
JWPehleilhh 4/20/44
Regraded Unclassified
41
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
the
DATE
TO
Secretary Morgenthau
APR 24 1944
FROM
Mr. Pehle
Attached you will find copies of the
exchange of memoranda between Sir Herbert Emerson
and myself dealing with the question of relations
between the Intergovernmental Committee on Refugees
and the War Refugee Board.
JuPaule
Attachments.
Regraded Unclassified
42
o
MEMORANDUM
P
April 17, 1944.
TO:
Sir Herbert Emerson, Director, Intergovernmental
Committee on Refugees.
FROM:
IIF. John Pehle, Executive Director, War Refugee
Board.
SUBJECT: The Intergovernmental Committee on Refugees and its
Working Relations with the War Refugee Board.
This is a reply to your memorandum of April 14 in
which you presented your proposals as to the working relation-
ships that should prevail between the Intergovernmental Com-
mittee and the War Refugee Board. First of all I wish to
state that I am in entire agreement with the proposals contained
in the memorandum. It seems to me that on the basis of the
working relationships which you outlined, it should be possible
for our respective agencies to continue to work in complete
harmony toward our common goal of alleviating the plight of
the refugees. We are sending copies of this exchange of mem-
oranda to our representatives abroad, and are again emphasizing
to them the necessity for the closest cooperation on the part
of members of our respective staffs.
The discussions that we have held in recent days
have been of extreme help to us in appreciating both the
assigned duties and actual achievements of your organization.
The spirit you have demonstrated leads me to believe that
the relations between our two agencies will continue to be
mutually helpful and friendly.
Your generous offer of unstinted cooperation is appre-
ciated and I wish to assure you that we on our part intend
to reciprocate wholeheartedly. Only in this way can we move
forward together, united in our determination to meet the
tragically pressing refugee problem.
s/s John W. Pehle
Regraded Unclassified
13
MEMORANDUM
P
Y
April 14, 1944
TO:
Mr. John Pehle, Executive Director, War Refugee
Board.
FROM:
Sir Herbert Emerson, Director, Intergovernmental
Committee on Refugees.
SUBJECT:
The Intergovernmental Committee on Refugees and
its Working Relations with the War Refugee
Board.
The Intergovernmental Committee on Refugees was formed
as a result of the conference which was convened, on the
initiative of President Roosevelt, at Evian, in July 1938.
Its membership prior to August 1943 consisted of the following
twenty-eight governments: Argentine Republic, Australia,
Belgium, Bolivia, Brazil, Canada, Chile, Colombia, Denmark,
Dominican Republic, Ecuador, France, Haiti, Honduras, Ireland,
Mexico, Netherlands, New Zealand, Nicaragua, Norway, Paraguay,
Peru, Sweden, Switzerland, United Kingdom, United States,
Uruguay, and Venezuela.
The persons coming within the early mandate of the
Committee were those Germans, Austrians and Sudentenlanders
who had not yet left their countries but who were being forced
to emigrate on account of their political opinions, religious
beliefs or racial origin, and those who had already left but
who had not yet established themselves permanently elsewhere.
The main purpose of the committee at the time of its establish-
ment was to arrange, by discussion with the German authorities,
an orderly system of migration; this involved the finding of
permanent homes for many refugees, and the member governments
made valuable contributions in this respect. They also assumed
the liability of financing the meetings of the committee and
its administrative expenditure, but did not assume any obli-
gations for the financing of involuntary emigration.
During the four years following the outbreak of war, the
activities of the committee were restricted by war conditions,
the limited nature of its mandate, and the lack of financial
resources. But in August 1943 the executive committee -
Regraded Unclassified
44
- 2 -
consisting of the governments of the Argentine Republic, Brazil,
Netherlands, United Kingdom, United States, and the French
Committee of National Liberation - met to consider certain
suggestions made by the United Kingdom and United States as &
result of the discussions which took place between the delegates
of their governments at Bermuda in the preceding April. The
recommendations adopted by the executive committee involved a
great expansion of the committee's membership, scope, functions
and finances.
Twenty-one additional governments were invited to join
the committee: Costa Rica, Cuba, Czechoslovakia, Egypt,
Ethiopia, Greece, Guatemala, Iceland, India, Iran, Iraq,
Luxembourg, Panama, Poland, Portugal, Salvador, South Africa,
Spain, Turkey, Union of Soviet Socialist Republics, and Yugo-
slavia, Affirmative replies have so far been received from
Czechoslovakia, Egypt, Iceland, India, Luxembourg, Poland,
South Africa, and the Union of Soviet Socialist Republics -
bringing the present membership of the Committee to thirty-six.
During this period when acceptances of newly-invited members
and ratifications of previous members are being received, the
executive committee has been operating on the basis of the
expanded mandate.
That mandate now includes, as may be found necessary and
practicable, in addition to those previously covered, those
persons, wherever they may be, who, as a result of events in
Europe, have had to leave, or may have to leave, their countries
of residence because of the danger to their lives or liberties
on account of their race, religion or political beliefs. With
regard to persons coming within the expanded mandate, the
executive committee is empowered to undertake negotiations
with neutral or Allied States or organizations, and to take
such steps 8.8 may be necessary to preserve, maintain and
transport the refugees. For the purposes enumerated above,
the executive committee is empowered to receive and disburse
both public and private funds.
Administrative expenses are shared by all member govern-
ments. With regard to operational expenditure, the governments
of the United Kingdom and the United States have agreed, subject
to legislative consent, to underwrite it jointly on the condí-
tions, first, that all projects which come within this offer
shall be considered individually, and the two governments
consulted before 8. project is sanctioned or expenditure in-
curred thereon; and, second, that when & clearer idea has
been obtained of the money required for the efficient conduct
Regraded Unclassified
45
- 3 -
of the committee's work under its new commitments, an invitation
shall be addressed to all the member governments inviting them
to contribute to this expenditure also, in accordance with
their abilities and their interest in the humanitarian work
of the committee.
This humanitarian work falls into three classes: (1)
Measures relating to persecuted persons still within the
territory of Germany and her European allies or territory
occupied or controlled by them - measures for their rescue
or escape from such areas, and measures for their preserva-
tion within such areas. These measures will be necessary for
persons in each such area until the threat of persecution
is ended - i.e., until Allied victory is achieved in a
particular area or for the whole of Europe. (2) Pre-armistice
measures relating to persecuted persons who may have escaped
or been rescued from such areas, or may yet escape or be
rescued - measures for their physical relief (food, clothing,
shelter, medical service), transport, employment, welfare, etc.
These measures will be necessary, in neutral or liberated or
conquered areas, until the allies are victorious over the
whole or a considerable portion of Europe. (3) Post-armistice
measures - measures for interim relief, for repatriation, and
for permanent resettlement of those who cannot be repatriated.
Under the authority of the executive committee the
director's office has been at work on all three types of
measures since last August. The Assistant Director has
visited Switzerland at the invitation of the Swiss Government,
stopping in Spain and Portugal on the way; and the Vice
Director has visited French North Africa, Italy, Egypt,
Palestine and Turkey. Our resident representative for Italy,
attached to the headquarters of the Allied Control Commission,
has already begun his activities; our resident representative
for French North Africa will begin work in B. few days; and it
is anticipated that 8. third representative will soon be installed
in Cairo to cooperate in the Middle Eastern work of UNRRA. A
comprehensive agreement with UNRRA as to respective responsi-
bilities is far advanced - the principle being that UNRRA,
wherever and whenever it operates, will handle physical relief
and initial mass repatriation, and that the Intergovernmental
Committee will handle the non-relief needs of the displaced
people who cannot be repatriated with reasonable speed. A
plenary session of the Intergovernmental Committee is scheduled
for the early summer.
According to Executive Order 9417, dated January 22, 1944,
establishing the War Refugee Board, that board is charged with
Regraded Unclassified
45
4
the responsibility of giving effect to the policy of the
American government "to take all measures within its power to
rescue the victims of enemy oppression who are in imminent
danger of death and otherwise to afford such victims all
possible relief and assistance consistent with the successful
prosecution of the war". The order states further that the
board "shall cooperate with all existing and future inter-
national organizations concerned with the problems of refugee
rescue, maintenance, transportation, relief, rehabilitation,
and resettlement." The groundwork is thus laid for working
relations between the War Refugee Board, an American agency
concerned with rescue and relief from enemy oppression, and
the Intergovernmental Committee, an international agency
concerned with that as well as other responsibilities - an
international agency in whose founding and recent reorgani-
zation the American government took 8. leading part.
Building on this foundation, we are now engaged in
discussions to insure the maximum benefit to the cause which
we both serve, with the minimum of duplication and confusion.
It appears that the War Refugee Board conceives of its activity
as coming solely within the first class of work mentioned
above in my description of the activities of the Intergovern-
mental Committee, i.e., immediate rescue and relief, except
for an interest in a relatively few projects falling within
the second class of work - i.e., pre-armistice care of rescued
or escaped persons - which may bear directly on the success
of rescue enterprises. On the other hand - though the following
statements must not be interpreted as binding the executive
committee, which will come to its decision after my report on
our present discussions has been submitted - it would seem
that the presence of neutrals within the membership of the
Intergovernmental Committee, and the limitation of its executive
committee to negotiations with neutral or Allied States or
organizations, imply that certain measures for rescue and
relief can be better undertaken by national bodies, such as
the War Refugee Board in the case of the United States.
For example, radio broadcasts intended to promote escape
or preservation seem not suitable for the Intergovernmental
Committee. Operations relating to the removal of persecuted
persons from the Balkans through Turkey seem at present to be
best carried out by the War Refugee Board acting in cooperation
with other interested governments, and, so long as this is so,
the Intergovernmental Committee will not wish to enter this
field. Licenses to American philanthropic organizations for
transferring funds abroad are of course the province of the
War Refugee Board.
Regraded Unclassified
47
- 5 -
More generally, it would seem imperative that the War
Refugee Board and the Intergovernmental Committee keep each
other fully, regularly and promptly informed of proposed and
actual activities; and that their field representatives, in
countries where both bodies are represented, should be instructed
to cooperate in the same way. Any operational project sub-
mitted by the Intergovernmental Committee for the consideration
of the governments of the United Kingdom and the United States
in accordance with the procedure already approved by the two
governments should be considered on its merits; and, if it is
jointly financed by the two governments, it should usually be
administered by the Intergovernmental Committee, but there might
well be special circumstances which would make it appropriate
and convenient for 8. given project to be carried out in part-
nership between the Intergovernmental Committee and the War
Refugee Board, or otherwise.
In one respect it is possible to speak for the executive
committee with all possible confidence. It would desire me
to offer to the officials of the War Refugee Board our
unstinted cooperation. The comprehensive responsibility which
is borne by the Intergovernmental Committee is so large, and
the rescue and relief operations on which it has been working -
energetically but quietly - since last summer are so tragically
urgent and so often disappointing in their results at the last
moment, that we need the closest possible association with the
fresh vigor and interest which the War Refugee Board represents.
s/s Herbert Emerson
14.4.44.
Regraded Unclassified
48
CABLE TO ALGIERS
From War Refugee Board to Ambassador Wilson and Ackermann
We have just received report from Schwarts in Lisbon
that French are refusing to accept in Lyautey Sephardic
Jews arriving in Spain after March 1, 1944. Report states
further that 50 Sephardics now in Perpignan, France, awaiting
admission into Spain and others still en route will be
excluded under this ruling.
Such a ruling would cause breakdown in plans to rescue
Sephardic Jews still in Nazi territory, as Spanish Govern-
ment will do nothing to rescue Sephardics unless assured
that they will be removed from Spain soon after arrival.
If after investigation you feel report is accurate, please
take up at once with Comite representatives indicating
unfortunate effects of such a step.
Schwarts has advised Beckelman concerning matter
THIS IS WRB ALGIERS CABLE NO. 5
April 24, 1944
1:45 P.M.
MJM:JWP:mgt 4/24/44
Regraded Unclassified
49
CABLE TO AMBASSADOR VINANT, LONDON
The War Refuges Board requests that you deliver the following
message so Nathan Barou, 55 New Cavendish Street, Londons QUOTE
Please telephone Colonel Bussel J. Forgan Mayfair eight four four
four to make appointment to consider plans we discussed in Lendon
with Phillip Dreyfus. Signed Goldmann, World Jewish Congress,
New York. UNQUOTE.
April 24, 1944
11:50 MeMo
LSLessertale 4/22/44
Regraded Unclassified
50
CABLE TO AMERICAN EMBASSY AT LA PAZ, BOLIVIA
The Department has been apprized that Papal Nuncio at
Bern informed Minister Harrison that Vatican had attempted
to work out relief measures for Jews holding Bolivian documents
and interned by Germany. Apparently, the cuestion of eventual
immigration as result of possible exchange was raised in
addition to the question of recognition of documents. Bolivia
is reported to have replied that these persons would be re-
ceived in Bolivia,
In transmitting the above for your information, the
Department authorises you to let it be known unofficially
in appropriate quarters that the helpful intention of
La Pas reported by Vatican, if carried out in fact, will
be thoroughly appreciated here.
In addition, we transmit for your information an-excerpt
from a circular airgram to some Latin American Republics, dated
April 10, as follows:
QUOTE Please also request the government to which
you are accredited, on humanitarian grounds, affirmatively
to approach the German government through the protecting
power with a demand that the lives of all persons holding
passports issued in its name or claiming its citizenship
on the basis of consular documents be safeguarded and
that they be given all rights, privileges and immunities
accorded to civilian internees of enemy nationality to
whom the Geneva Convention regarding the treatment of
prisoners of war is currently applied by analogy. UNQUOTE.
You may let it be known unofficially in appropriate quarters
that action along these lines is considered by this Government as
the only effective means to save the persons concerned,
April 24, 1944
2:15 p.m.
BAksin:jp 4/22/44
Regraded Unclassified
51
CARLE TO AMERICAN INRASSY AT BAN JOSE, COSTA RIGA
Regraded Unclassified
Befor to Department's circular airgrams of March 31,
1:05P.M., of April 10, 11:00 della and of
The Department has nov been apprised that Papal Funcio at
Born informed Minister Harrison that Vatican had attempted
to work out relief measures for Jews holding Costs Rican
documents and interned w Germany. ^pparently, the question
of eventual immigration as result of possible exchange vas
raised in addition to the question of recognition of documents.
Costa Rica is reported to have replied that it is disposed to
recognise passporte issued by its consule only to the extent
of eight families, and that these families would be allowed
to remain in Costa Rice only for the duration of the war,
unless the persons mncemed are either farmers or indus-
trialists.
At the time this reply is reported to have been given
$6 Vatiean, the assurance contained in our circular airgram
of April 10 ahad evidently not(repeat not) yet reached
Costs Rican government. It is therefore felt advisably to
reiterate the assurance of this Government that Costa ica
will not (repeat not) be expected to grant physical admission
to any of the persons concerned in the event of exchange or
of any other procedure leading to their release. Under
these assurances, Cesta Rica would not (repeat not) be
asked to permit any of these persons to enter its territory
even temporarily, unless 10 se desires, Accordingly, the
numerical limitation stated in Costa Rican reply to the
Vatioan seems no longer justified, and the hope is expressed
that Costs Rica will agree to not in the sease of our circular
airgram of A pril 10 without any numerical limitations whatsoever.
In the light of these neurances, please impress upon
the Costa Rican government the extress urgency of acquiescing
in our requests and of acting upon them without delay. You
should impress upon Costa Rican officials that since failure to
act would almost certainly spell death for the persons involved,
and theatthat since no(repeat No) responsi bilities or obligations
would result for Cesta Rica from acquiescence in our requests,
we would be serely disappointed if Costs Rican authorities would
not(repeat not) whole=heartedly cooperate with our efforts to
save these people.
April 26, 1944
2:15 Pollo
4/21/44
52
CABLE TO AMERICAN EMBASSY AT SAN SALVADOR, KL SALVADOR
With reference to Department's circular airgrams of
March 31, 1:05 p.m., of April 10, 11:00 a.m. and of
, the Department has now been apprised that Papal
Nuncio at Born informed Minister Harrison that Vaticen had
attempted to work out relief meesures for Jews holding
Selvadorean documents and interned by Germany. Apparently,
the question of eventual immigration has result of possible
exchange was raised in addition to the question of recog-
nition of documents. Salvador is reported to have given a
negative reply, premisably because it was not (repeat not)
prepared to permit persons in question actually to enter
Salvador.
At the time this reply is reported to have been given
to Vatican, the assurance contained in our circular airgram
of April 10 had evidently not (repeat not) yet reached
Salvadorean government.
Please verify information received from Bern and reiterate
this Government's assurance that, in the event of exchange,
Salvador will not (repest not) be expected to grant physical
admission to any of the persons concerned even on e temporary
or tentative basis.
In the light of these assurances, please impress upon
the Selvadorean government the extreme urgency of acquiescing
in our requests and of acting upon them without delay. You
should impress upon Salvadorean officials that since failure
to act would almost certainly spell death for the persons
involved, and that since no (repeat not responsibilities or
obligations would result for Salvador from acquiescence in
our requests, we would be sorely disappointed if Salvadorean
authorities would not (repeet not) whole-beartedly cooperate
with our efforts to save these people.
April 24, 1944
2:15 p.m.
BAksin:RLSmith/jp 4/21/44
Regraded Unclassified
53
CARLE TO AMERICAN IMBASSY AT QUATEMALA CITY, GUATEMALA
With reference to Department's circular airgrams of
March 31, 1805 P.M., of 4pril 10, 11:00 MoBo and of
the Department has now been apprised that Papal
Funcio at Born informed Minister Harrison that Vatican had
attempted to work out relief measures for Jews holding
Guatemalan documents and interned by Cermany. Apparently, the
question of eventual immigration as result of possible exchange
was raised in addition to the question of recognition of
documents. Guatemala is reported to have given a negative
reply. presumably because it was not (repeat not) prepared
to permit persons in question actually to enter Guntemala.
At the time this reply is reported to have been given
to Vatican, the assurance contained in our circular airgram
of April 10 had evidently not (repent not) yet reached
Gustemalen government.
Please verify information received from Born and reiterate
this Government's assurance that, in the event of exchange,
Quatemala will not (repeat not) be expected to grant physical
admission to any of the persons conderned own on a temporary
or tentative basis.
In the light of these assurances, please impress upon
the Ountemalan covernment the extreme urgency of acquiescing
in our requests and of acting upon them without delay. You
should impress upon Guatemalan officials that since failure
to act would almost certainly spell death for the persons
involved, and that since no (repeat no) responsibilities or
obligations would result for Guatemala from acquiescence in
our requests, we would be sorely disappointed if Guatemalan
authorities would not (repeat not) whole=heartedly cooperate
with our efforts to save these people.
April 26,44
2:15 p.m.
RAksintHimmith/jp 4/21/44
Regraded Unclassified
54
CABLE TO AMBASSADOR WILSON AT PORT-AU-PRINCE, HAITI
Refer to your A-205 of April 12 and to Department's circular
airgrams of March 31, 1:05 p.m., of April 10, 11:00 a.m. and of
The Department has now been apprised that
Papal Nuncio at Bern informed Minister Harrison that Vatican had
attempted to work out relief measures for Jews holding Haitian
documents and interned by Germany. Apparently, the question of
eventual immigration as result of possible exchange was raised
in addition to the question of recognition of documents. Haiti
is reported to have replied that it could take no (repeat no)
action, presumably because it was not (repeat not) prepared to
permit persons in question actually to enter Haiti.
At the time this reply 1s reported to have been given to
Vatican, the assurance contained in our circular airgram of
April 10 had evidently not (repeat not) yet reached Haitian
government.
Please werify information received from Bern and reiterate
this Government's assurance that, in the event of exchange,
Haiti will not (repeat not) be expected to grant physical
admission to any of the persons concerned even on a temporary
or tentative basis.
In the light of these assurances, please impress upon
the Haitian government the extreme urgency of acquiescing in
our requests and of acting upon them without delay. While
appreciative of the sympathetic consideration promised to
you by Foreign Minister according to your A-205, this Govern-
ment believes that only prompt specific action along the lines
suggested in our circular airgrame can save the people concerned,
You should therefore impress upon Haitian officials that since
failure to act would almost certainly spell death for the
persons involved, and that since no (repeat no) responsibilities
or obligations would result for Haiti from acquiescence in our
requests, we would be sorely disappointed if Haitian authorities
would not (repeat not) whole-heartedly cooperate with our efforts
to save these people.
April 24, 1944
2:15 P.M.
HAksintRLSmith/jp 4/22/44
Regraded Unclassified
55
CABLE TO AMERICAN EMBASSY AT MANAGUA, NICARAGUA
Refer to Department's circular airgrams of March 31,
1:05 p.m., of April 10, 11:00 a.m. and of
The Department has now been apprized that Papal Nuncio at
Bern informed Minister Harrison that Vatican had attempted
to work out relief measures for Jews holding Nicaraguah
documents and interned by Germany. Apparently, the question
of eventual immigration as result of possible exchange was
of eventual immigration as result of possible exchange was
raised in addition to the question of recognition of documents.
Nicaragua is reported to have replied that it is disposed to
recognise passports issued by its Consuls only to the extent
of eight families, and that these families would be allowed
to remain in Nicaragua only for the duration of the war,
unless the persons concerned are either farmers or indus-
trialists.
At the time this reply is reported to have been given
to Vatican, the assurance contained in our circular airgram
of April 10 had evidently not (repeat not) yet reached
Nicaraguan government. It is therefore felt advisable to
reitereate the assurance of this Government that Nicaragua
will not (repeat not) be expected to grant physical admission
to any of the persons concerned in the event of exchange or
of any other procedure leading to their release. Under
these assurances, Nicaragua would not be asked to permit
any of these persons to enter its territory even temporarily,
unless it so desires. Accordingly, the numerical limita-
tion stated in Nicaraguan reply to the Vatican seems no
longer justified, and the hope is expressed that Nicaragua
will agree to act in the sense of our circular airgram of
April 10 without any numerical limitations whatsoever.
In the light of these assurances, please impress upon
the Nicaraguan government the extreme urgency of acquiescing
in our requests and of acting upon them without delay. You
should impress upon Nicaraguan officials that since failure to
act would almost certainly spell death for the persons involved,
and that since no (repoeat no) responsibilities or obligations
would result for Nicaragua from acquiescence in our requests,
we would be sorely disappointed if Nicaraguan authorities would
not (repeat not) whole-heartedly cooperate with our efforts to
save thempeople.
April 24, 1944
2:15 p.m.
BAksintRISmith/jp
4/21/44
Regraded Unclassified
56
CABLE TO AMERICAN EMBASSY AT ASURCION, PARAGUAY
Regraded Unclassified
With reference to Department's A-118 of April 10 and
the Department has now been apprised
that Papel Funcio at Born informed Minister Harrison that
Vatican had attentped to work out relief measures for Jess
holding Paraguayan documents and interned by Germany.
Apparently, the question of eventual immigration as result
of possible exchange was raised in addition to the question
of recognition of documents. Paraguay is reported to have
been recognised by Paraguay.
It is further learned from Vation sources that the
trouble arose when the proposal was, made to exchange these
Jews for Germans located in 6 outh merica. Jews who had
Paraguayan passporte were included in the list by Germany.
A protest was made by Paraguay which stated that the passports
had been illegally issued and Paraguay refused to recoggise
the passports. The Germans withdrew as a result of this
and protection was suspended by Spain.
At the time this attitude is reported to have been taken t
by Paraguay, the assurance contained in our droular airgram
of April 10 had evidently not(repeat not) pet reached
Paraguayan government.
Please verify information received from Born and reiterate
this Government's assurance that, in the event of exchange,
Paraguay will not (repeat not) be expected to grant physical
admission to any of the persons concerned oven on a temporary
or tentative basis.
In the light of these assurances, please impress upon
the Paraguayan government the extreme urgeney of acquiescing
in our requests and of acting upon them without delay. You
should impress upon Paraguayan efficials that since failure
to act would almost certainly spell death for the persons
involved, and that since no (repeat no) respensibilities or
obligations would result for Paraguay from acquiescence in
our requests, we would be sorely disappointed if Paraguayan
authorities would not (repeat not) whole-heartedly cooperate
with our efforts to save these people.
*****insert following lines
replied that the passporte of Polish Jews at Vittal have
April 24, 1944
2115 p.m.
WLSmith/lcm 4/23/46
57
CABLE TO AMBASSADOR WHITE AT LIMA, PERU
Refer to your A-357 of April 10, and to Department's circular
airgrams of March 31, 1:05 p.m., of April 10, 11 a.m. and of
The Department has now been apprized that Papal Nuncio at
Bern informed Minister Harrison that Vatican had attempted to
work out relief measures for Jews holding Peruvian documents
and interned by Germany. Apparently, the question of eventual
immigration as result of possible exchange was raised in addition
to the question of recognition of documents. Peru is reported
to have replied that it could not (repeat not) recognize the
passports in question, presumably because it was not (repeat not)
prepared to permit persons in cuestion actually to enter Peru,
At the time this reply is reported to have been given to
Vatican, the assurance contained in our circular airgram of
April 10 had evidently not (repeat not) yet reached Peruvian
government.
Please verify information received from Bern and reiterate
this Government's assurance that, in the event of exchange, Peru
will not (repeat not) be expected to grant physical admission
to any of the persons concerned even on a temporary or tentative
basis.
In the light of these assurances, please impress upon the
Peruvian government the extreme urgency of acquiescing in our
requests and of acting upon them without delay. 48 individuals
were already lost due to adverse action by Peru, Mere sympathetic
consideration promised to you according to your A-357, though
much appreciated by this Government, will not (repeat not) save
the remainder. You should impress upon Peruvian officials that
since failure to take prompt and affirmative action would amost
certainly spell death for the persons involved, and that since
no (repeat no) responsibilities or obligations would result for
Peru from acquiescence in our requests, we would be sorely dis-
appointed if Peruvian authorities would not (repeat not) whole-
heartedly cooperate with our efforts to save these people.
April 24, 1944
2:15 p.m.
BAksintRLSmith/jp 4/22/44
Regraded Unclassified
58
PARAPHRASE OF THEREORAM RECEIVED
FROM:
American Embassy, Lima
TO:
Secretary of State, Washington
DATED:
April 24, 1944
NUMBER: 541
CONFIDENTIAL
Reference is made herewith to your confidential
circular airgram of April 15.
A note has been requested by the Foreign Minister.
Speaking offhand be thought that no specific private
agencies for this purpose in Peru and infant mortality high.
Foreign colonies might possibly be willing to take certain
number of their own nationals. Please cable, therefore,
what nationalities in prespective child emmigration are
represented.
WHITE
Regraded Unclassified
59
PROPOSED TELEGRAM TO AMERICAN LEGATION, DUBLIN
Reliable reports indicate that there are in France eight to ten
thousand orphaned or abandoned children or persons deported to Poland
who are now being collected by Germans for similar deportation and
probable death. Many are presently hidden in French homes. This
Government, through War Refugee Board and in cooperation with Inter-
governmental Committee, making every effort prevent deportation and
facilitate children's emigration to neutral territory. American com-
sular officers in Switzerland, Spain, and Portugal have been author-
ized issue to refugee children total five thousand immigration visas
regardless of religion, nationality, or stateless status and regard-
less close relatives in enemy-occupied or controlled territory.
Purpose this authorization is assurance to Swiss, Spanish, and
Portuguese Governments that children will not remain their charges
after termination hostilities. Canada, Australia and appropriate Latin
American Governments are being approached with suggestion they take
parallel action with regard to Switzerland.
With reference Department's 39, March 14, Bern advises that
Minister Stucki has unsuccessfully (apparently on an informal basis)
attempted obtain Laval exit facilities fro children. No pub-
licity should be given to Stucki's negotiations and temporary failure.
We are accepting offer of Swiss Government to approach Vichy formally
in an endeavor to obtain permission for the children to leave France.
Please urge Government of Eire to take parallel action vis a vis Vichy.
A similar request is being made of the Portuguese Government.
In presenting the foregoing to the Government of Eire, it is
suggested that you explain that this proposal is on a level apart
and entirely different from any discussions of a political or
economic nature between our two governments.
April 24, 1944
2:15 P.M.
LSL:MS:JWP:mgt 4/24/44
Regraded Unclassified
60
AIR MAIL
No. 427
EMBASSY OF THE
UNITED STATES OF AMERICA
Lisbon, April 24, 1944
Subject: Transmitting Memoranda to War Refugee Board
on Refugee Situation in Portugal.
The Honorable
The Secretary of State,
Washington.
Sir:
I have the honor to transmit herewith a memorandum
prepared by Dr. Robert C. Dexter, Special Attache to the
Embassy for refugee matters, commenting on a report, a
copy of which is enclosed, prepared by the British Embassy
in Lisbon on the refugee situation in Portugal. Provided
the Department perceives no objection, it would be appre-
ciated if the memoranda would be forwarded to the War
Refugee Board.
Respectfully yours,
For the Ambassador:
Edward S. Crocker
Counselor of Embassy
Enclosures:
1. Memorandum prepared by Dr. Dexter;
2. Report prepared by British Embassy.
300
MCR/ajl
Regraded Unclassified
61
Enclosure no. 1, despatch no. 427 dated April 24, 1944,
from the American Embassy in Lisbon.
MEMORANDUM
To: The War Refugee Board
From:Robert C. Dexter, Special Attache
I have the honor to transmit herewith a detailed and
comprehensive report on the refugee situation in Portugal
which was recently submitted to the British Government by
the British Embassy in Lisbon. This data was carefully
gathered by the Embassy on the basis of reports submitted
by the various refugee agencies, and I believe that the
facts given are correct and I agree with most of the con-
clusions.
There are one or two points on which comment is neces-
sary and a paragraph is added which gives a more complete
picture of the situation of the Spanish Republican refugees
who at the moment present the most serious problem in Portugal.
It should be added in this connection that if any arrangement
could be made for the evacuation of Spanish refugees, it
would improve the situation in regard to other refugees in
this country.
The following are comments on the British report appended
hereto:
Page 2. Paragraph r. (a): Plans are now under way to
admit children from the occupied countries.
Page 2. Paragraph 1. (b): The present political and
military situation in Slovakia, Hungary and Rumania makes this
suggestion at the moment impracticable.
Page 3. Paragraph 2. (a): We would strongly emphasize
the importance of this recommendation.
Page 3. Paragraph 2. (b): Às is indicated, the British
Government is making an effort to carry this recommendation
into effect, and we would urge that our Government assist in
every possible way.
Regraded Unclassified
62
- 2 - .
Page 4. Paragraph 3: Te would strongly emphasize the
importance of this suggestion, both on behalf of the refugees
now here, many of whom have been here for a long time, and of
others who are in greater danger. The Portuguese would pre-
sumably be more willing to take newcomers if those here were
evacuated.
Page 4. Paragraph 3 (z): Te agree with the British con-
clusion in regard to parcels but believe that with proper
care on the part of the sending agencies it might be possible
to send food which would not fall into German hands. However,
this is a moot point and should have careful consideration.
There follows the paragraph on Spanish refugees re-
ferred to above.
SPANISH REFUGEES
The problem of the Spanish refugee is, by all odds,
the most serious, measured either in terms of numbers or
difficulty. Estimates of the number of Spaniards now in
Portugal illegally vary from 1000 to 3000. New people come
into the various relief offices every few days, many of them
extremely exhausted from their journey over the frontier and
totally destitute. It seems probable that 8 much greater
number find shelter among kindly disposed Portuguese, at
lease for a time. Many of these apply to one of the com-
mittees when they are onliged to move or have some expenses.
There are a few women and some families among these refugees,
but the great majority are single men.
Any Spaniard caught without papers by the police is
thrown into prison, sometimes treated with brutality, and a
number of cases are definitely known when they have been re-
turned to Spain. We know of 25 such cases, and there are
probably more. Some who have been returned manage to escape
and reappear the second or third time. Others are never
heard from after their return, and it is quite possible that
some of them are executed, since they have death sentences
hanging over them. For some weeks after the announcement of
the amnesty in Spain few additional Speniards arrived, but
before long they were coming in greater numbers than ever.
It was said that a great many political prisoners had been
released but they were being re-arrested on trivial charges.
Regraded Unclassified
63
- 3 -
Information which has come within the last twenty-four
hours indicates that, presumanly owing to increased Spanish
pressure, a number of Spanish Republican refugees who were
living comparatively safely in one of the towns outside Lisbon
are now being returned to Spain. Just why this action should
be taken at this time is unknown, but it emphasizes the serious-
ness of the present situation.
There is no solution at present in sight for most of
these Spanish refugees in Portugal. A very few have been
able to escape clandestinely through their own efforts and
a very small number have received visas for some country in
the Western Hemisphere. Some Spaniards are able to make a
plausible claim to South American citizenship, and in those
cases there is hope of getting them out, but for others there
is practically no chance.
Any information concerning the proposed plan for Mexican
visas for these refugees would be appreciated. At the moment
this seems to be the only possibility of help.
RCD/ajl
Regraded Unclassified
64
Enclosure no. 2, despatch no. 427 dated April 24, 1944,
from the American Embassy in Lisbon.
MEMORANDUM transmitted by the British Embassy, Lisbon,
to the Foreign Office, London.
Paragraph 3 of Foreign Office despatch No. 69, first
sentence.
As Portugal does not border directly on Axis-controlled
territory, there has been little that we could do directly to
assist in "rescuing the victims of enemy oppression
What we have been able to do in some small measure is to help
refugees who have escaped from Axis-occupied Europe into Spain
to obtain transit visas for Portugal, and to assist refugees
who have reached Portural either legitimately or clandestinely
and arrange where possible for their onward journey. Our con-
tribution has in fact been not the rescuing of the refugees
from enemy oppression, but primarily their protection (especi-
ally from harsh treatment by the Portuguese Police) after they
have reached Portugal. But while we have made no distinction
of race or religion, we have made a definite distinction of
nationality in that we have given all possible support to
Allied missions for the protection and evacuation of their
nationals, but have only intervened on behalf of enemy nationals
or stateless persons in exceptional cases on their merits.
Generally speaking the protection of these persons has been
left to the Jewish organizations and to the Unitarians and the
Quakers.
To explain the position clearly it is necessary to give
a brief account of the situation of refugees in Portugal:-
The Portuguese Government soon after the first influx of
refugees following the fall of France adopted the principle
that no refugees from Axis Europe could remain in Portugal.
Since that time they have only given transit visas to refugees
and have generally insisted on a guarantee. of early departure.
Refugees arriving in Portugal may be classified as follows:-
(A) Refugees with their papers in order.
These possess transit visas and visas of ultimate destination.
They may reside anywhere in Portugal, but they are warned that
Regraded Unclassified
65
- 2 -
they must leave the country within a certain period (generally
30 days). In order that a check may be kept on them they have
to report to the Police every 15 days for the renewal of their
residence permit. If at the end of the specified period they
have not left the country, they are sent, if they have adequate
funds, to Caldas da Rainha in "residence forcee". If they have
no funds, they go to prison.
(B) Refugees whose papers are not in order (who have arrived
in the country clandestinely).
(1) Allied refugees.
By special arrangement with the International Police the
names of these persons are given to the Police and on their
arrival in Lisbon they are sent to an agreed place of residence
near to Lisbon until such time as they can be sent out of Portugal.
(Some approved stateless refugees have been included under this
arrangement.) If, however, any of these refugees are arrested
on the road to Lisbon, they go to prison and have to remain there
until arrangements can be made to send them out of the country.
(11) Jewish refugees (insofar as they are not covered by (1)).
The Jewish organisations have found by experience that the
best method is for these refugees to give themselves up to the
police on their arrival in Lisbon. They then go to prison but
the Jewish organisations generally manage to get them out after
a certain period (unless they were born in Russia - see below).
They are then placed in forced residence at Caldas or elsewhere.
(iii) Other refugees (enemy nationals, stateless persons and
Spaniards).
Most of these know that they should get in touch with the
Unitarians or the Quakers. The Unitarians have found by experience
that it is better for non-Jews not to give themselves up to the
Police. The police are, in fact, more lenient towards Jews. Non-
Jewish refugees they tend to treat as inso facto communists. (The
Unitarians also take under their wing Jewish refugees born in
Russia, who, if they followed the advice of the Jewish organisations
would languish in prison indefinitely.)
Regraded Unclassified
66
- 3 -
Thus the Unitarians (and to a less extent the Quakers) have
under their care a number of stateless refugees and Spaniards who
are living clandestinely in Portugal with their papers not in order.
If any of these refugees fall into the hands of the police they go
to prison. The Unitarians and the Friends give them such help and
protection as they can there, but they do not often succeed in get-
ting any of them out of prison.
The number of refugees (not including Spaniards) at present in
Portugal is not exactly known but it is probably about 800, of whom
by far the greater part are in forced residence. Conditions of life
in places of forced residence are quite agreeable though naturally
demoralising over a long period of time. But conditions in some of
the Portuguese prisons are very bad, and insenitary. There have been
few cases of maltreatment or beating of Jewish refugees, but the
Unitarians have authenticated cases of brutal maltreatment of non-
Jews. There is also the danger, particularly for Spaniards but also
(to a lesser degree) for Germans, that they will be put back over the
Spanish border (of. the case of Senhor Lopes Real - Foreign Office
despatch 66 of February 17th).
All the refugee organisations have submitted memoranda to the
U.S. Legation suggesting ways in which more can be done for refugees.
The memorandum by the Joint Distribution Committee which is the clear-
est and most constructive, is attached for information; briefly, the
recommendations of the organisations may be summarised under three
headings:-
1. Facilitating the entry of refugees into Portugal.
2. Improving the lot of refugees in Portugal.
3. Facilitating their departure from Portugal.
Under 1, the following suggestions were made:-
(a) that the Portuguese Government be asked to admit into Portugal
such children (both Jewish and non-Jewish) from France and other
occupied countries as may succeed in escaping into Spain, either for
a limited period until they are evacuated, or for the duration of the
war. In this connexion it was pointed out that the U.S. Government
had agreed to grant up to 5,000 visas for children in France.
(b) If the Portuguese would give immigration visas to Jews
in some of the satellite countries like Slovakia, Hungary and
Roumania they might be given exit permits by those governments.
It might be necessary in this connection to give a guarantee that
such refugees would be evacuated 8 reasonable time after they had
reached Portugal.
Regraded Unclassified
67
- 4"-
(c) That the Portuguese Government be asked to change their
present policy of refusing admission to all refugees born in Russia.
(d) That the Portuguese Government be urged to grant entry
visas to relatives of refugees strended in Portugal.
Under 2, it was suggested:-
(a) that in view of the small numbers of refugees now remain-
ing in Portugal, the Portuguese Government be asked to remove, or
at least to relax, the ban forbidding them to work or exercise a
trade.
(b) that the Portuguese Government be asked to facilitate
the transfer of refugees from prison to residence forcee.
(c) that representations be made to the Portuguese Government
against the brutal treatment sometimes meted out to refugees
(usually non-Jewish).
Under 3, various suggestions were made about arranging des-
tinations for refugees in Portugal or awaiting visas for Portugal,
it being understood that the attitude of the Portuguese Government
to admitting further refugees would be to a great extent condi-
tioned by the speed with which refugees left the country.
Three suggestions of a more general nature are also made in
the memoranda:-
X. That the Portuguese Government should allow Portuguese
shipping to go to Constanza in Roumania to pick up 5,000 Jewish
children from Transnistria awaiting transport to Palestine.
y. That plans should be prepared now for dealing with the
influx of refugees into the Peninsula which is to be expected on
the opening of the second front.
z. That permission (from the U.S. Government and His Majesty's
Government) be given for the despatch of increased numbers of
parcels from Portugal to the ghettos, internment camps, etc. in
occupied Europe.
Of the above suggestions, 1(a) would seem to deserve sympa-
thetic consideration and support, insofer as it does not interfere
with more important considerations (see Foreign Office despatch
Regraded Unclassified
68
- 5 -
No. 123 of the 27th March and Madrid telegram No. 494 to Foreign
Office of the 30th March). The Portuguese Government would be
likely to respond to an appeal on humanitarian grounds for a
certain relaxation of their visa regulations, especially in the
case of children and especially if we and the U.S. Government were
able to give some guarantee that the recipients of the visas would
not remain an undue length of time.
(b) would seem impracticable
1(c) would seem worth trying. The Portuguese attitude on
this point is childish.
1(d) is perhaps worth trying.
2(a) is a reasonable suggestion but likely to meet with
resistance from the Portuguese.
2(b) is another suggestion which deserves sympathetic con-
sideration, although the number of persons affected ie
probably not so very great. Mr. Hart has suggested that
we should arrange with the International Police for the
establishment of a place of residence to which persons
to whom we (and the U.S. Government) were prepared to
give limited protection could go. It should in this way
be possible to get some people out of prison and give
others at present in hiding reasonable security and
facilitate the task of evacuating them, if destinations
can be found for them. All expenses would, of course,
fall on the refugee organisations concerned. This
would, of course, raise a security problem, as, if we
are to protect refugees without distinction of race,
religion or nationality, we must be satisfied that none
of the refugees in question are undesirable. (N.B. Al-
though from the humanitarian point of view refugees
from Spain constitute an identical problem to refugees
from occupied Europe, political considerations would
presumably make it impossible for us to afford them
even such limited protection. They would have to be
left to the care of the Unitarians - I believe the
Mexican Legation also helps sometimes.)
2(c) would, I think, be better kept in reserve. If arrange-
ments can be made to get the unfortunates (that is those
against whom there is no security objection) out of
prison we shall have gained our point.
Regraded Unclassified
69
- 6 -
3. It should be possible to arrange destinations for the
small numbers of refugees still in Portugal. If desti-
nations in America cannot be found for all, could the
remainder be sent to the Fedhala camp in North Africa?
His Majesty's Government and the United States Govern-
ment might consult together on this point. One diffi-
culty, of course, is that many of these refugees do not
want to leave Portugal. They want to stay and wait for
the collapse of the Axis so that they can get back
quickly to the countries from which they have been driven.
X. seems impracticable.
y. is an important consideration. But will there be an
influx of refugees to the Peninsula when the second
front opens. That will no doubt depend on circumstances
but it is a contingency for which we ought to be prepared.
2. is bound up with our general policy as regards despatch
of parcels to occupied territory.
Regraded Unclassified
70
DRAFT OF TELEGRAM TO AMERICAN LEGATION. LISBON
Reliable reports indicate that there are in France eight
to ten thousand erphaned or abandoned children of persons do-
ported to Peland who are now being collected by Germans for
similar deportation and probably death. Many are presently
hidden is French homes. This Government, through War Refuges
Board and in cooperation with Intergovernmental Committee,
making every effort prevent deportation and fadlitate children's
emigration to neutral territory. Consular officers in Switser-
land have been authorised to issue four thousand immigration
visas to children under similar conditions and for like purpose
stated in Department's 1017 of April 12. Born advises that
Minister Stucki has unsuccessfully (apparently on an informal
basis) attempted obtain from Laval exit facilities for children.
No publicity should be given to Studki's negotiations and
temporary failure. We are accepting offer of Swice Government
to appoach Vichy formally in an endoaver to obtain permission
for the children to leave France. Please urge Portuguese Govern-
ment to take parallel action vis-s-vis Vichy. & similar request
is being made of the Government of Hire.
Please advise Department your progress in this matter.
THIS IS VRB LISBON CABLE NO. 4
April 24, 1944
1:45 p.m.
ISLesser
KPTandishilem
4-22-44
Regraded Unclassified
71
CABLE TO AMBASSADOR HAYES AT MADRID
Refer to Department's 992 of April 10, and of
The Department has now been apprized that the
Papal Nuncio at Bern informed Minister Harrison that Vatican
had attempted to work out relief measures for Jews interned
by Germany and holding Latin American documents, Apparently
the question of eventual immigration to respective countries
as result of possible exchange was raised in addition to
the question of recognition of documentation. Presumably,
this explains negative results of Vatican's efforts,
The Vatican did not (repeat not) give any assurances
that in no (repeat no) event would the Latin American
countries be expected physically to admit the persons
concerned, In our despatches to our missions in Latin
America, referred to in our 992 of April 10, we gave this
assurance most emphatically and undertook to arrange for
refuge elsewhere, We hope therefore to obtain Latin American
consent to recognition and exchange.
The Department is communicating with Vatican also
suggesting cooperation on the basis of our assurances to
Latin Americans.
The above is for your information and to facilitate
your efforts to carry out objectives outlined in our 992
of April 10.
It was further stated by Nuncio at Bern that Nuncio
at Madrid had been recuested to ask the Spanish government
to inform Spanish Ambassador at Berlin of gravity of peril
of Polisy Jews with Paraguayan documents and to insist that
he urgently give them effective protection.
Please make similar representations on behalf
of Jews and others with Paraguayan or any other Latin
American documents, acting jointly with Papal Nuncio or
on your own if joint action not (repeat not) immediately
forthcoming.
Your attention is again drawn to urgency of the issue
and to necessity that Department be promptly informed of the
progress which you are making.
April 24, 1944
2:15 p.m.
BAksintjp 4/20/44
Regraded Unclassified
71 A
EMBASSY OF THE
UNITED STATES OF AMERICA
No. 2384
Madrid, Spain, April 24, 1944.
Subject: Representations to Spanish Government on subject
of welfare of refugees interned in German custody
bearing documents issued in names of certain
American Republics
CONFIDENTIAL
The Honorable
The Secretary of State,
Washington.
Sir:
Supplementing my confidential telegram No. 1397 of April 21,
1944, 6 p.m. to the Department, I have the honor to enclose copies
of the Embassy's Notes Verbales No. 2325 and No. 2326 of April 19,
1944 which were addressed to the Ministry of Foreign Affairs in
accordance with instructions contained in the Department's confi-
dential telegram No. 992 of April 10, 1944, 10 p.m. concerning the
interest of the Government of the United States in the welfare of
& large number of persons reportedly in possession of passports
or other documentation issued in the names of certain countries
of the Western Hemisphere who are said to be held at the present
time in internment camps and prisons in German and German-occupied
territory.
The first of the enclosed Notes Verbales sets forth the
assurances contained in the Department's telegram No. 992
concerning plans for the exchange of these persons against German
nationals interned in the Western Hemisphere and requests the
cooperation of the Spanish Government in helping to safeguard
their lives until such time as those plans can be put into effect,
while the second requests the good offices of the Spanish Govern-
ment in arranging for the return to Vittel of 238 South American
and American citizen internees reported to have been removed from
there on March 31, 1944 to an unknown German prison.
Regraded Unclassified
71-B
- 2 -
As was stated in the Embassy's telegram under reference, a
competent official of the Ministry stated, upon the receipt of the
Embassy's representations, that the Spanish Government had not
been previously informed concerning the latter report, but gave
assurance that it would make every effort to comply with the
Embassy's request at the earliest possible moment.
Respectfully yours,
/s/ Carlton J. H. Hayes
Enclosures:
1. Note Verbale No. 2325
2. Note Verbale No. 2326
File No. 800
NWB/jf
Original to Department
Copy to Algiers
Regraded Unclassified
71-C
Enclosure No. 1 to despatch No. 2384 dated April 24, 1944 from
Carlton J. H. Hayes, American Ambassador, at Madrid, Spain on
subject of Welfare of Refugees Interned in German Custody Bearing
Documents Issued in Names of Certain American Republics.
No. 2325
NOTE VERBALE
The Embassy of the United States of America presents its
compliments to the Ministry of Foreign Affairs and has the honor
to refer to the reported presence in internment camps and prisons
in German and German-occupied territory of a large number of
persons, the majority of Jewish race, in possession of passports
or other documentation.issued in the names of certain countries
of the Western Hemisphere, including Chile, Costa Rica, Ecuador,
El Salvador, Haiti, Honduras, Nicaragua, Paraguay, Peru and
Venezuela, and to bring to the attention of the Spanish Government
the earnest preoccupation of the Government of the United States
with the fate of these persons.
Pursuant to this interest on the part of its Government, the
Embassy has been instructed to inform the Spanish Government (1)
that discussions with the Governments of the American Republics
concerned are being undertaken by the Government of the United
States looking toward a further exchange of civilians between
those countries and Germany; (2) that all persons now held in
German-controlled territory who are in possession of passports
or other documents issued in the names of those countries will
be considered eligible for exchange under the proposed arrange-
ment; and (3) that until such exchange does, in fact, take place,
it is expected that they will be accorded by the German Government
the same rights, privileges and immunities which that Government
expects to be accorded to its nationals interned by those
countries in the Western Hemisphere.
In order that the lives of these innocent persons may be
safeguarded until such time as provision can be made for their
removal to places of refuge, the Embassy of the United States of
America requests, on behalf of its Government, that the Spanish
Government instruct its Ambassador in Berlin to afford them all
possible protection and that, on the basis of the assurances given
above, it endeavor to make known to the proper German authorities
the continuing interest on the part of the American Republics con-
cerned in the welfare of all those individuals, interned or
imprisoned in-German custody, who hold passports or other
documents issued in their names.
Regraded Unclassified
71-D
- 2 -
In bringing this matter to the attention of the Spanish Govern-
ment the Government of the United States believes that, by virtue of
the purely humanitarian considerations involved, it should be con-
sidered as entirely apart from any problems of an economic or poli-
tical nature pending between the two Governments, and is confident
that it can count on the prompt and wholehearted cooperation of the
Spanish Government in ensuring that the fate of these persons will
be decided in a manner consistent with the principles of humanity.
Madrid, April 19, 1944.
NWB/jf
/jf
Regraded Unclassified
71-E
COPY
Enclosure No. 2 to despatch No. 2384 dated April 24, 1944 from
Carlton J. H. Hayes, American Ambassador, at Madrid, Spain on
subject of Welfare of Refugees Interned in German Custody Bearing
Documents Issued in Names of Certain American Republics.
****
No. 2326
NOTE VERBALE
The Embassy of the United States of America presents its
compliments to the Ministry of Foreign Affairs and has the
honor to refer to its Note Verbale No. 2325 of April 19, 1944
requesting the cooperation of the Spanish Government in safe-
guarding the lives of persons now held in internment camps and
prisons in German and German-occupied territory who are in
possession of passports or other documents issued in the names
of certain countries of the Western Hemisphere, and to bring
to the attention of the Spanish Government the reported removal
on March 31, 1944 of 234 South American internees and 4 American
citizens from the German internment camp at Vittel to a German
prison, the location of which remains unknown.
Pursuant to the principles set forth in the Embassy's Note
Verbale under reference and on the basis of the assurances
contained therein, the Embassy requests that the Spanish
Government endeavor to ascertain the circumstances under which
the reported transfer was effected, and to use its good offices
to obtain the return of the group concerned to their original
place of internment at Vittel pending the completion of arrange-
ments for their removal to the Western Hemisphere in exchange
for German nationals now interned in that area.
Madrid, April 19, 1944.
NWB/jf
Regraded Unclassified
72
CARLE TO MINISTER JOHNSON AND OLSEN, STOCKHOLM
(As modified by Mr. Warren of State, on April 24, 1944.)
Reference is made to your 1235 of April 11. War Refugee
Board appreciates importance of Hellsted statement regarding
extent of danger from Gestape to many Germans, Swedes and
others. Board is charged with reseaing QUOTE the victims of
enemy oppression who are in imminent danger of death UNQUOTE
regardless of religion, nationality or stateless status.
Accordingy, Board would varaly welcome Swedish action to
afford resous to all groups in Finland which would especially
be endangered as a result of increased German influence.
Cencerning Hellsted's remark that permission to refugees
and others to enter Oveden would amount to discrediting Finnish
government, Board suggests that you refer his and other Swedish
officials to Bobeman statement reported in your 908 to the
effect that the Finnish government has itself applied for the
admission of Jewish refugees.
With respect to the questions reported in your 1235,
the Board holds that all persons referred to in our 724 of
April 21 are in danger. It 10 prepared to naice arrange-
ments for the evacuation from Sweden, as soon as practicable,
of all persons, other than Swedes, who may be accorded refuge
in Sweden, and for the maintenance in Sveden of such refugees
who cannet claim the support of their own governments.
Your 1879 of April 21 received. Swedish action in
authorizing as a starter 100 visas to central Baropean refugees
now in Finland appreciated. Board deoply concerned about
danger threatening not only 113 Jewish refugees from Germany
and Austria previously referred to but also 2600 others detailed
in our 1726 of April 21 in which Board's attitude is fully
explained. Beard fully associates itself with your represents-
tions in your 1209 of April 8.
In light of your 1379 of April 21, Board assumes that
the Hollsted statement does not (repeat not) in any way modify
the confidential assurances given by Beheman and reported
in your 906 of March 16. Any confirmation of said assurances
will be volcomed ad should you consider that danger is imminent
please press imadiately for further action.
Reference made Cleen's Ec. 3. Board gratified by
favorable Swedish reaction to his appointment and approves
statements rade to press.
This is WHB Cable No.
4/20/44
Regraded Unclassified
73
CARLE TO STOCKHOLM
To Minister Johnson from War Refugee Board.
Be your 1355. Temporary employment Miss Tous Filseth at $3,000
per annus and Miss Ulla Afvirsen at $1440 per annus authorised.
Olsen should send personnel information promptly. You will be
informed subsequently by State Department as to manner in which
salaries should be paid.
THIS IS WHB STOCKHOLM CABLE NO. 7
April 24, 1944
1:30 p.m.
Witewart; pdk 4/22/44
Regraded Unclassified
74
No. 3223
Stockholm, April 24, 1944
Subject: Transmission of Original and Copy of a
Communication to the War Refugee Board.
The Honorable
The Secretary of State,
Washington, D. C.
Sir:
I have the honor to transmit the original and copy
of a communication to the War Refugee Board, enclosing
certain general information regarding the situation of
Jews in Sweden and the position of stateless refugees
in Sweden. It is requested that the original be trans-
mitted to the War Refugee Board.
Respectfully yours,
HERSCHEL V. JOHNSON
Herschel V. Johnson.
Enclosure:
Original and copy of & communication to the War Refugee Board.
File 848/CIO/be
Original and hectograph to Department
Regraded Unclassified
75
848/ICC/be
Stockholm, Sweden
April 24, 1944
Mr. John W. Pehle
Executive Director,
War Refugee Board,
Washington, D. C.
Dear Mr. Pehle:
As of possible interest to the Board, I attach a
copy of a summary of the situation of Jews in Sweden,
prepared by a member of one of the Mosaic organizations
here.
Recently I asked Miss Filseth of the Socialstyrelsen
to give me a summary of the position of stateless refugees
in Sweden, a copy of which is also attached.
Sincerely yours,
Iver C. Olsen,
Special Attache for
War Refugee Board.
Enclosurest
1. - Copy of a summary of the situation of Jews in
Sweden.
2. - Copy of a summary of the position of stateless
refugees in Sweden,
Regraded Unclassified
76
COPY/be
Stockholm, April 19, 1944
Am/L
South African Jewish War Appeal
P.O. Box 5991
Johannesburg
Dear Sirs,
Through the Royal Foreign Office the Jewish Congrega-
tion of Sweden has been informed that you have asked the
Swedish Consulate General in Pretoria for a report on the
situation of Jews in Sweden, Since it is taken for granted
that you are chiefly interested in getting information about
the situation of the different groups of refugees in this
country. the undersigned, who 18 secretary of the committee
appointed by the Jewish Congregation for the relief of the
refugees in Sweden has been instructed to inform you as
followe:
Before the outbreak of the war, approximately 3,000
refugees of Jewish descent were staying in Sweden. Among
these emigrants, mostly hailing from Germany and Austria,
a - comparatively speaking - great number were depending -
entirely or in part - on our assistance. In August 1939
those assisted by us could be classified in three groups:
a) Completely destitute persons, whose number amounted
to about 230. The main part of this group consisted of
persons without labour permit, or, because of illness,
advanced age or other circumstances unfit for work,
b) About 300 Chaluzim.
c) About 460 Jewish children. These children had
been taken to this country as transmigrants in order to
enable their parents left in Germany to effect their own
emigration oversess or to Palestine and have the children
join them later on.
Thus, in the early autumn of 1939, the Swedish-Jewish
Aid Organisation had to take care of all together 1,000
persons.
The first refugees who were forced here by the war-
conditions were Poles and among them a comparatively great
amount of Jews. Most of them wanted to continue via Sweden
to other European or Overseas countries. However, quite &
considerable group of these potentially transmigrant Jews
remained in this country and many of them became dependent
on our assistance. In due course, though the Polish Lega-
tion has taken charge of these refugees.
The situation
Regraded Unclassified
77
- 2 -
The situation for those refugees in Sweden who intended
to continue migrate underwent a fundamental change, when
as a result of the events in the spring of 1940 sailing from
Scandinavia to non-European countries became almost impos-
sible. As a consequence, from that time on the refugees
wanting to leave for the United States or other American
countries were forced to travel the eastern route (via
Finland, Russia, Japan) which, of course, meant an extreme-
ly great strain on our financial resources. Before the
outbreak of the German-Russian war we had also been able to
start a contingency of Chalusim and Aliyah-children on their
way to Palestine via Russia, Turkey and Syrin (Irak).
When as B. further result of the war the route via Russia
W&B stopped further emigration from Sweden was made impossible
and similarly, of course, transmigration. Therefore, from
that time on our work has been chiefly limited to different
forms of direct relief.
Since the end of 1941, it has not been at all possible
for Jews still living in Germany or Germen occupied countries
to emigrate to this country in 8. legal way.
In the outumn of 1942 a new influx began, caused by
the persecution of Jews in Norway. These Jewish refugees
crossed the frontier illegally mostly with the resistance
of Norwegian patriots. The number of Jews from Norway who
took refuge in Sweden amounted to 690, while the remainder
of Norwegian Jewry - - about 800 - was deported to Germany.
Those of the Jews, escaped from Norway to this country, who
were Norwegian citizens were given financial and social aid
by the Refugee Office of the Royal Norwegian Legation to
Sweden; the stateless refugees were assisted by the proper
Swedish authorities. At the time we contributed B lump
sum for providing the last mentioned category with clothes
and other necessities,
When about B. year later the persecution of Jews in
Denmark began, Jewish relief work in Sweden was set a new
great and difficult task. Within FL single month about
6,000 Jews managed also in the case with the help of
native patriots - to escape across the sea from Denmark
to Sweden. It may be supposed that of Dennark's Jewo
about one thousand have been deported. Immediately on
the arrivel of the Danish Jews in Sweden provisional a.o-
commodation in camps was found for the majority of refugees;
some of the refugees with special connections to people in
this country were to & certain extent allowed to choose
their domicile freely. For some months aid to Jews from
Denmark was supplied from both public and Jewish sources:
afterwards the Danish Legation in Stockholm has undertaken
the burden of the assistance of these Jews as well as of
stateless Jews migrated from Denmark. However, the re-
sources of
Regraded Unclassified
78
- 3 -
sources of the Denish Refugee Office are limited and have
to be administrated carefully. Ye, therefore, have under-
taken to grant additional aid to these Jewish refugees.
Thus, we have established three homes for aged people, given
scholarships and to & very large extent given clothing help
and provided for lodging, Besides, we have appropriated
money for Jewish religious purposes, especially for religious
instruction and for the extra expenses arising from the ortho-
dox manner of living. This extensive refugee aid exceeds
very substantially the set Aside in our general budget
for such purposes so that at the end of last year we were
forced to make an appeal to all Swedish Jews for contribu-
tions which met great response. We may mention that in
addition we have received considerable contributions from
Jewish organisations in England, the U.S.A. and Palestine.
To give you an idea of the approximate economic extent
of our activities, we submit some figures pertaining to 1943.
Our total income amounted to C&. Kr. 1,225,000:-. The
Swedish Government appropriates a certain amount for aid to
Refugees; a State contribution of Kr. 150,000:- is included
in this sum. The remaining income is derived from congraga-
tion taxes, voluntary contributions and donations from abroad.
On the debit-side current relief constitutes the by far
largest item. At present we are keeping 7 homes for children.
Though the Chalusim are earning most of their living thea-
selves, we are forced to give them current financial assistance
for social (e.g. maternity help) and Jewish-culturel purposes.
Our total expenses during 1943 amounted to ca, Kr. 850,000/-
ao that in the beginning of 1944 there remained a balance of
Kr. 375,000:-. However, we cannot regard this aum as an AB-
set in the proper sense, because we have already pledged our-
selves to the Denish Refugees Office to pay a sum of Kr.
330,000-- for different purposes in 1944. Because of the
extremely increased expenses we have been forced to raise
the already comparatively high congregation taxes by 25%.
Our survey of the Swedish-Jewish relief-work would not
be complete without mentioning something about our efforts
in favor of distressed Jews outside Sweden.
In the autumn of 1941 the German authorities, as mentioned
above, proceeded to prohibit Jews in general from leaving
Germany or the occupied territories. Similtaneously - as
iswell known - deportations began in a large measure, Though
there was & minimal chance to succeed we tried to save indivi-
dual Jews by obtaining entrance permits from the Swedish au-
thorities. Boyond that, in exceptional cases, Jews who had
especially close connections with Seeden have been granted
Swedish citizenship. However, all these efforts to get the
Jeve into this country met with very little success.
Within our
Regraded Unclassified
79
- 4 -
Within our limited means, we endeavoured to help utter-
ly destitute Jews outside Sweden by sending them money and
food, Money was sent, among other places, to Palestine,
France, Rumania, the Government General (Gracow), the Protec-
torate Bohmen-Mahren (Theresienstadt), Shanghai. The total
expenses for this non-Swedish help amounted to about
Kr. 320,000/- last year, This sum was raised partly by
private voluntary contributions, partly by the Swedish branch
of the organisation "Save the children" which placed funds
to the amount of Kr. 165,000:- at our disposal.
Generally speaking, the situation of the Jewish refugees
in Sweden may be described as being good. The economic
situation of the refugees is improved because the general
conditions have given increased opportunities for work so
that quite & number of formerly unemployed refugees can now
earn their own living.
Of course the Jewish immigration of these last years -
having added some 10 - 12,000 Jewish refugees to our congrega-
tions which normally consisted of together 6, - 7,000 Jews -
has given rise to antiscmitic propaganda in certain quarters.
However, antisemitism can not be said to be deeply rooted
in Sweden.
The Swedish authorities have constantly shown great
understanding and given extensive cooperation to our ef-
forts, One outstanding instance is the way the Danish
refugees were received and assisted. Many non-Jewish
private groups have also been of great assistance.
We hope that the outline of our work which we have
tried to give to you in this letter is the information you
desire and are glad to supply any additional information
you may wish. The information contained in this letter is
for your private use only and not intended for publicity.
You would greatly oblige by cabling acknowledgment of
receipt.
I have the honour to be, dear Sirs,
Very respectfully yours,
Frans Arnheim
Secretary.
Regraded Unclassified
80
COPY/be
The position of stateless refugees in Sweden.
The stateless refugees in Sweden can be divided into the
following groupst
1.
The stateless refugees who arrived in Sweden from the
middle of Europe after 1933.
2, The stateless refugees who escaped from Norway after the
ninth of April 1940, and found asylum in Sweden, and
those who have escaped in 1942 and later on, chiefly
jews, on account of programs.
3. The stateless refugees from Denmark, arrived in Sweden
after the first of October 1943, chiefly jews on no-
count of the programs.
4.
Stateless refugees from other countries who during the
war have been "washed ashore" in Sweden.
rough estimate shows that the total number of refugees of
all nationalities staying at present in Sweden amounts to
between 40-50,000 of which some thousands, probably between
7-8,000 are stateless. Most of these have bye and bye
found themselves jobs and work. The last statistical
review shows that of all refugees staying in this country
only about 3,000 are permanently public charges.
Of Group 1. it is considered that the most have been given
work, or have got their means granted by the Swedish Authori-
ties and other organizations.
Of Group 2, arrived about 600 refugees from the ninth of
April 1940 to the end of 1943 in Sweden. Of these about
50 have gone overseas, which leaves 550, including 350 jews.
Of these stateless refugees, the Royal Norvegian Legation
Refugee Department in Stockholm has consented to help those
who have stayed in Norway continuously for at least twenty-
five years before their escape to Sweden, when they feel
like Norwegians, and it is not on purpose that they haven't
applied for Norwegian citizenship before. The other state-
less refugees, however, are referred to The Swedish Kungl.
Socialstyrelsen.
Of Group 3. It is difficult to give exact numbers, as the
Royal Danish Legation Refugee Department in Stockholm does
not distinguish between Danish and stateless refugees. One
can however, with certainty estimate that about 2,000 state-
less refugees have arrived in Sweden from Denmark.
Of Group 4,
Regraded Unclassified
81
- 2 -
Of Group 4, there are several minor groups of refugees who
in the course of events have arrived here from many different
countries, and the number of whom it is difficult to give.
Some must still be regarded as citizens of foreign countries,
but under the present conditions they have no Legations of
their own to address to. F. inst. the refugees from the
Baltic States have here in Sweden been given aliens passports.
Ad, Passports.
An exceptional position have the checz refugees who, both
in Norway and in Denmark for some years have been regarded
as "stateless". In Sweden however, these refugees have
been granted Checz citizenship by the Csech Legation in
London. The Polish Legation in Stockholm has also supplied
the Polish refugees with passports.
All the other stateless refugees have become Swedish aliens
passports.
Ad, financial support.
All matters concerning financial support are dealt with
by the Swedish authorities through the Kungl. Socialstyrel-
sen, and this support in given following approximately the
same rules as for the usual unemployed. The amount in
question is much lower than the rates held by the Refugee
Departments of the Royal Denish and Norwegian Legations
respectively.
Alterations have been suggested in this respect, and has
been attempted from different sources to effectuate a rise
in the financial support already granted. This action has,
however, gained no results, as it has officially been point-
ed out that refugees can not expect better conditions than
the Swedish unemployed.
Ad, juridical rights.
The refugees have no authority to which they can address
for juridical aid. In most cases they are referred to
the goodwill and help of civilians, and they are often
prevented from the full maintenance of their legal rights
as the necessary connections are missing. For instance,
the refugees who are kept in prison or held by the authori-
ties for political or other reasons, could become free if
they had some place to live, or if some authority was present
which could undertake their interests, as to get them work,
or give them any possibility to become independent.
14. Moral
Regraded Unclassified
82
- 3 -
1.Moral support.
Usually it 1a not the financial support which is most decisive
or of the greatest importance for the refugees. As often
it is important that they have some institution or persons
with whom they can discuss their difficulties and position
86 a whole. Their problems can seem mere trifles for others,
but for themselves these often appear large and even insur-
mountable. They need someone who can advise them, settle
their difficulties and make things easier for them. They
have thus usually no one to tell them what they can do, or
what they ought to do, so that they in most cases have no
clear conception of their legal claims on the civil authori-
ties, according to international law, owing to their inability
to master all regulations in language foreign to them. In
short they need someone who can take all such matters in
hand for them. As a result they feel isolated and out aside,
Ad. Schools and education.
While the refugees who are members of a community and who
have their legation and their citizenship in full order,
have certain advantages as to the continuation of their
studies and education in general which have been inter-
rupt by the present conditions, the stateless refugees are
at a grave disadvantage in this regard, certain few excep-
tions not considered. The same applies to registration
work in the civil service, which is practically closed to
stateless refugees, in spite of their eventual full competence.
4d, working possibilities.
According to the new Swedish regulations dating from the end
of 1943, Danish and Norwegian refugees can accept every kind
of work, temporary or of & more permanent nature, without
working certificate. This does not apply to the stateless
refugees. These must in each and every case claim for such
a certificate through the Kungl. Socialstyrelsen, for which
they often have to wait quite a long time, and which can
be difficult to obtain.
To summarize: There is urgent need for aome central in-
stitution which can deal with all problems concerning the
stateless refugees, an institution which for instance can
effectuate better living circumstances for them, establish
contact between them and the organizations and associa-
tions which can be to any help to them, establish contacts
which can be helpful for them settle all complications
and questions towards the civil authorities, etc.
Another question
Regraded Unclassified
83
- 4 -
Another question which now avaits its solution 1s the
problem of the return of the stateless refugees to their
native countries or to other countries after the war.
This problem, which is of first rate importance, mist be
tackled before the war is over, as it otherwise will
become completely overlooked in the flood of all other
tremendous problems rising then, exactly as was the case
after the last war,
One can erect three main groups of these stateless refugees!
1. The stateless refugees who in spite of many years stay
in the country haven't obtained citizenship. Those state-
less refugees should now already get some assurance, that
they have somewhere to go after the war.
2. Refugees from Germany, Austria, Czechoslovakia, and
other countries who have arrived in Sweden, often through
many other countries, and who now mostly are declared
stateless. This applies to the largest part of them, not
considered the Czech refugees as mentioned above. Many
of these Czechs, however, have no wish whatever, to return
to Omechoslovakia, but want to remain in Sweden, Denmark
or Norway, These refugees are equally circumstanced as
the refugees in group 1. Consequently all possibilities
for their return to the countries they want to stay in,
must be investigated immediately and eventual guarantees
for their rights and their juridical position in these
countries as to working possibilities and all other
advantages corresponding to those held by the citizens of
the countries in question, must be secured.
One must also try to secure an opportunity for the previous-
ly German and Austrian citizens to retain their original
citizenship, if they so want. Many of them, however, will
not wish to return to their native countries. They have
settled, got friends, and have built up a new existence
which they won't give up.
Beside the problems treated above there are other urgent
tasks of post-war relief work. For instance all those
suffering mentally and physically from deportations.
Those who will survive all inhuman treatment will natural-
ly be to consider as stateless. These persons cannot
be considered in full yet, but it is of vital importance
to prepare everything for their definitive selution
soon as possible
(Signed) Tove Filseth
Regraded Unclassified
84
CABLE TO MINISTER JOHNSON AND OLSEN, STOCKHOLM, FROM WAR REFUGES BOARD
It has been reported that several Polish ships carrying food
and clothing originally intended for Polish civilian population have
been tied up for come time at Steckholm and that their cargees
have either been warehoused or remain in their holds. Please
ascertain if this report is correct and, if so, the names of the
ships involved; the nature and whereabouts of cargoes; dates when
voyages interrupted; causes therefor and efforts, if any, to secure
clearance.
THIS IS WEB STOCKHOLM CABLE NO. 6
April 24, 1944
10:30 a.m.
LeLessertale 4/23/44
Regraded Unclassified
PARAPHRASE or TELEGRAM RECEIVED
85
FROM:
American Legation, Stockholm
Secretary of State, Washington
Regraded Unclassified
TO:
DATED:
April 24, 1944
NUMBER: 1433
CONFIDENTIAL
Following is no. 5 for the WEB,
It would appear, on basis of our experience with the
Swedish Foreign Office, that there would be better pros-
pects of success if our Legation in Helsinki would initiate
the action contemplated in Department's message of April 21,
no. 724, War Refugee Board no, 3, by making approach to
Finnish Foreign Office that would result in the Finnish
Government requesting Government of Sweden to allow entry of
these refugees on the ground that in Finland, their lives
are in jeopardy. Then this Legation would press Swedish
Foreign Office for sympathetic consideration of the Finnish
request and offer United States financial assistance in
carrying out the evacuation program.
It should be emphasized, in general, that it is not be-
lieved by the Swedee that in fact minority groups in Tipland
are in sérious jeopardy. Swedes say that, in event ofa
German occupation of Finland, minority groups are unlikely
to be singled out for persecution because it is an estab-
lished fact that such groups have participated as actively
against Russia in Finnish military operations as any other
class and have suffered proportionate casualties. The
Swedes are seriously concerned, on the other hand, with the
possibility of Russian military operation against Finland
which would produce a Finnish refugee movement into Sweden
running into hundreds of thousands.
Swedes are reluctant to initiate any action which
might compromise this position beforehand because of this
prospect which would have major proportions.
JOHNSON
86
BJR - 792
Steckholm
This telegram must be
paraphrased before being
Dated April 24, 1944
communicated to anyone
other than a Governmental
Bec'd 8:20 P.M.
agency.
(BR)
Secretary of State,
Washington.
1435, April 24, 10 p.m.
CLEEN'S No. 4 FOR WAR REFUGEE BOARD.
Rabbi Vilhelm Wolbe requests the fellowing message
to be transmitted to Rabbi Abraham Kalmaneivets, 540
Bedford Avenue, Breeklyn, New York:
"Have constant contact with Rabbi Shmuleivets,
Shanghai. Price increase there enormous. If transfer
via Steckholm possible please try to obtain joint DES00
support also religious groups and advise exact proper-
tion of funds contributed by each and how it should be
expended. Please help Rabbis Regew and Koidanewsky.
Every connection with Balticus abselutely unavailable
and we are trying utmost obtain information?.
I idiscussed above message with Wolbs and advised
him that be should (*) more specific details of situation
in Shanghai, particularly as to what type of ogran
can be carried out and what funds are needed. He will
comply. lee explained general desirability of transfers
of free exchange and suggested he inquire of Shanghai
group whether they could berrow funds locally against
authorization and guarantee of joint DISCO or ether
groups to repay dellar equivalent after the war.
net too impressed with W olbe's ability to grasp
necessities of this type of problem.
JOHNSON
BB
(*) apparent emission
Regraded Unclassified
87
CABLE TO BERN
From War Refugee Board to Harrison
Please deliver the fellowing message from Edward
Cahill of the Unitarian Service Committee to Noel Field,
12 Rue de Vieux College, Geneva:
"On recommendation Toscanini urge you contact
Mrs. Wally Piercy Silvahof, Berne"
THIS IS WRB BERN CABLE NO. 8
April 24, 1944
3:00 p.m.
FH:lab 4/24/44
Regraded Unclassified
88
CABLE TO BERN
From War Refugee Board to Harrimon
Please deliver the following message to Adolph
Freudenberg, 41 Avenue de Champel, Geneva, from Leland Rex
Robinson and Henry Lieper of The American Committee for Christian
Refugees:
"Total remittances $24,000 sent April 13 and 21
representing payments through June Stop Cable if
any unblocking delays also explanation unblocked $15,000
credit mentioned April 2 cable Stop No further remit-
tances promised until July but expect continue $8,000
monthly thereafter also making effort obtain some
additional assistance meeting French budget Stop Accepting
your judgment best disposition funds specifically approving
budget cabled December 10 subject our ability remit adequate
funds Stop Happy your cable April 24 confirms construction
project".
THIS IS WHB BERN CABLE NO. 9
April 24, 1944
5:15 P.M.
yH:lab 4/24/44
(Text of Message telephoned
by Leland Rex Robinson
4/24/44)
Regraded Unclassified
89
CABLE TO BERN
From War Refugee Board to Harrison
Please deliver the following message to Rene
Bertholet, Wasdratrasse 14, Zurich, from Frank Kingdon of
the International Rescue and Relief Committee:
"Sending you $10,000 on License W-2138
according details communicated to you by American
Legation Bern Stop Report back immediately through
Legation on activities and whether you have diffi-
culties financial or otherwise"
THIS IS WRB BERN CABLE NO. 7.
April 24, 1944
3:00 P.M.
FH:lab 4/24/44
Regraded Unclassified
90
CABLE TO MINISTER HARRISON, BERN
Appreciate information contained in your 2282 of April 13.
Had we had earlier knowledge of Vatican efforts we would have
supported it with adequate assurances to Latin American countries
as indicated below. In the circumstances, our 1221 of April 10
becomes still more urgent, and you are requested to proceed
accordingly with all possible despatch, if you have not done so
already.
When BO doing, please note that in contemplating exchange
of Jewish holders of Latin American papers for Germans in
Western Hemisphere this Government has advised Latin American
countries that it does not (repeat not) expect such countries
physically to admit any of these persons but will make arrange-
ments for refuge elsewhere,
This information may be conveyed by you to Nuncio in
confidence.
We are communicating with Vatican and requesting its
support in our efforts on this basis. We are also commu-
nicating with our missions in Latin America in the light
of information conveyed in your 2282 of April 13.
THIS IS WRB BERN CABLE NO. 6.
April 24, 1944
2:15 P.M.
BAkain:jp 4/20/44
Regraded Unclassified
91
PARAPHRASE OF TELEGIAM SENT
/ROM:
Secretary of State, Washington
TO:
Amlegation, Bern
DATED:
April 24, 1944
NUMBER: 1414
CONFIDENTIAL
FROM WAR REFUGEE BOARD FOR TITTMANN
There is given below the substance of a mensage sent
to Madrid.
As a result of interesssion by the Holy Bee,
whose humanitarian efforts on behalf of the
oppressed peoples of Europe have resulted in the
sqving of thousands of lives, the Spanish Govern-
ment has on several occasions in the past recog-
nised groups of Sephardie Jews in Axis-occoupied
territory as Spanish nationals, and has intervened
with Germany for their release from concentration
camp
ad subsequent evacuation to Spain.
Information has now been received by the War
Refuges Board that 400 such Sephardie Jens,
Spanish nationals residing in Athens, have
recently been imprisoned in a concentration camp,
and it is vital that they be given Spaniah recog-
nition to forestall deportation and almost certain
death.
You should approach the appropriate Spanish
officials and inform them of the situation of the
refugees under reference in order to rescue them
through the Spanish Government's aid. Full
assurances may be given to the Spanish Government
that funds will be available for the support of
such of these persons as may be evacuated to Spain,
and that prempt action will be taken to speed their
departure from Spain to places of refuge. Please
keep the Department informed of all developments,
For Tittmann's attention
It is requested that you approach the appropriate
Vatican authorities to request the Vatican's support for the
rescue mentioned above.
HULL
Mide Chauncey (for the Sec'y), Abrahamson, Akain, Bernstein Cohn, DuBois,
Friedman, Gaston, Hodel, Laughlin, Lesser, Luxford, Mann, Mannon, Marks,
McCormack, Paul, Pehle, Follak, Rains, Sargoy, Smith, Standish Stewart,
Wednstein, H. D. White, Files
Regraded Unclassified
92
AGK-741
PLAIN
Bern
Dated April 24, 1944
Rec'd 5:55 p.m.
Secretary of State,
Washington.
2600, Twenty-fourth
Budapest despatches 20-21 reports decree creat-
ing union of Hungarian Jews to contain all Jews re-
quired wear Yellow Star and appointment by Jaross
provisional Jewish committee nine members to organize
union on countrywide basis. Central council Jews on
Warsaw Bucharest model under Presidency Samuel Stern
already active at Budapest on evacuation and resettle-
ment measures. Numerous Jews reportedly now being
settled near factories and railway installations and
several city districts including region around Dob-
Ucca designated for residence exclusively by Jews in
Ghetto style.
HARRISON
EJH
93
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
The American Minister, Bern
TO:
The Secretary of State, Washington
DATE:
April 24, 1944
NUMBER: 2603
CONFIDENTIAL
On April 19 Weingert called at the Legation. Concerning
the situation he did not appear to be very well informed and
was not able to say whether the authorities of Germany had
actually received the authorizations for entry into Palestine,
Your statement that the so-called Palestinian certificates
have been withheld from delivery or were lost somewhere in
transmission or particularly in Switzerland was not confirmed
by him, (Refers to your message dated April 12, number 1268.)
(Note from the Legation: Concerning Palestine certificates
apparently there is some misunderstanding. The practice is
to notify the Government of Germany and the persons affected
that the appropriate Palestinian authorities have authorized
their entry into Palestine rather than to send the actual
certificates. Through the Swiss Protective Power, the British
Legation at Bern and the British Foreign Office this is ac-
complished officially.)
It is stated by the British Legation that lists of persons
whose entry into Palestine has been authorized have regularly
been forwarded to Berlin through the Swies authorities and that
an attempt to notify directly the refugees concerned has been
made by the Jewish Palestine Agency in Geneva, IRC, and the
authorities of Switzerland, It is believed by the British
Legation that notifications have all been made regularly and
it (the British Legation) does not know of any instance
wherein names have been omitted from lists or lists have been
lost,
Therefore I - not taking further action on your number
1268 dated April 12 since more definite particulars on which
action might be premised are lacking. In this connection it
would probably be of assistance if you can indicate just what
the reference to lost certificates means or if you can indicate
the identity of the persons who may have been affected.
HARRISON
DCR:MPL
4/26/44
Regraded Unclassified
94
PARAPHRASE OF BELEGRAM RECEIVED
FROM:
ANIMBASSY, Born
TO:
Sucretary of State, Washington
DATED:
April 24, 1944
NUMBER: 2613
CONFIDENTIAL
Referring to former letters the Joint Relief
Commission requests your support for Swisss export
license for specific foodstuffs purchased from joint
distribution gift department in Switzerland.
Two. A reply has been made by as that neither
he nor his British colleagus feels IRC program
respect purchases under this $100,000 need be referr-
ed to the Legation for approval under system now
being discussed in Londen for relief purchases in
Switserland, but CA added that the mtter has been
referred to the American Embassy, London, and Depart-
ment pending receipt of definite instructions.
Three. Interpretation of the Legation is that
IRO may under latitude of Treasury license to Joint
Distribution Committee purchase Switserland any and
all types of products without reference to London
or our prier approval. Please inform us whether this
is a cerrect interpretation?
Far. In view of the urgency of Department's 279,
January 27, and others, early instructions are
respectfully requested so that definite reply can
be made to the Joint Belief Commission.
The foregoing message has been repeated to
London as the Legation's no. 678 and is in reference
to By cable no. 2305, of April 3, and no. 2122 of April 6.
HARRISON.
Regraded Unclassified
95
COPY
MA
PARAPHRASE OF TELEGRAM RECEIVED
FROM: AMEMBASSY, Ankara.
TO:
Secretary of State, Washington
DATED: April 24, 1944
NUMBER: 744
SECRET
FROM THE AMBASSADOR FOR ATTENTION OF WRB
This 1s Ankara No. 45.
Yesterday Simond, representative of the International
Red Cross informed me that he had again spoken to
von Papen in regard to the safe conduct for the BS TARI
and promise had been made by von Papen to send a
fourth telegram to Berlin about the granting of this
safe conduct. According to Simond, von Papen was still
optimistic that he would receive the safe conduct as
he was certain no decision had as yet been arrived at
as he had not received a negative reply. Simond
was also informed by von Papen that he had charged the
German minister in Ankara, who recently departed for
Germany to immediately take up the matter on his
arrival in Germany.
STEINHARDT
Regraded Unclassified
96
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embasay. Moscow
TO:
Secretary of State, Washington
DATED: April 24, 1944
NUMBER: 1417
CONFIDENTIAL
It is My opinion that at this time it would be
definitely inadvisable for a special attache on refugee
matters to be sent here. Insofar as the Soviet Government
is concerned, it will deal with such matters only through
the Foreign Office and in a formal and official manner,
In order to get effective results, matters of this sort
must be handled with high officials of the Soviet Govern-
ment who do not receive attaches and junior officers of
the Embassy because of heavy pressure of important busi-
ness. A special attache would not be permitted by the
Soviets to travel about the country or to develop direct
contacts with various agencies of the Soviet Government.
Doubtless the Department is aware that I have to take up
refugee matters with Molotov and Vashinski personally.
I am sure that having made our general approach to the
Soviet Government asking for its cooperation in the
War Refugee Board work, the best way to further implement
that cooperation is to present to the Soviet Government
concrete and specific projects.
In order to further the work of the WRB I desire to
do everything possible. Because of the factors I have
mentioned, the work here vis & vis the Soviet Government,
can only be handled by no and the senior officers of the
Embassy rather than by the appointment of a special attache
for refugee matters. Whether the work we will be allowed
to do will be great in volume is doubted. of course, if
it provies to be so, I would wish to review the situation
further and express my views as to the type of man required
for the work at that time.
MARRIMAN
Regraded Unclassified
97
CABLE TO HAROLD H. TITTMAN, JR., AMERICAN REPRESENTATIVE, VATICAN CITY
The following telegram has been received from Minister Harrison
at Bern, dated April 13:
QUOTE Details of approaches which the Vatican made
to various Governments of South America in an attempt to
work out relief measures for Jews interned in Germany or
German-occupied territory who hold documentation issued
by those Governments were supplied to me on April 9 by the
Papal Nuncio, Bern. Apparently the question of eventual
immigration to respective countries in course of possible
exchange was raised in additon to the question of recognition
of documentation. The following is the substance of the
replies.
1. Because of laws forbidding admission, a negative
reply was made by Panama with respect to Polish Jews.
2. Both Nicaragua and Costa Rica are disposed to
recognize passports which their respective Consuls issued
up to eight families which could remain in these Republics
only during the war if the families are neither industrialists
nor farmers.
3. They would be received in Bolivia.
4. A negative reply was made by Salvador and Guatemala.
5. Instructions to verify and recognize passports have
been issued by Chile.
6. Each case would be considered individually by Uruguay.
7. Necaction could be taken by Haiti.
8. Passports could not be recognized by Peru.
9. Passports could be recognized by Cuba if no objection
is made by Great Britain and the United States.
10. Passports of Polish Jews at Vittel have been recognized
by Paraguay.
Bolivia and Paraguay are represented in Germany by Spain
and the rest of the countries listed above are represented
by Switzerland. We assume that they will inform their res-
pective protective powers concerning any action which they
take in the future following representations of the American
Government.
It is stated by the Nuncio that in the present reported-
ly aggravated situation of certain victims the Holy See had
requested its Madrid representative to ask the government of
Spain to inform the Spanish Ambassador at Berlin of gravity
of peril of Polish Jews who have Paraguayan documentation and
to insist to him upon the urgency of effective protection for
them.
Regraded Unclassified
98
- 2 -
Information had been received by the Nuncio that the
cause of the trouble arose when the proposal was made to
exchange these Jews for Germans located in South America.
Jews who had Paraguayan passports were included in the
list by Germany. A protest was made by Paraguay which
stated that the passports had been illegally issued and
Paraguay refuged to recognise the passports. The Germans
withdrew as a result of this and protection was suspended
by Spain. I have been further informed by Nuncio that
this has been confirmed by International Red Cross which
has promised its intervention if an exchange is objective
conditioned on Holy See's action. UNQUOTE.
While grateful to the Holy See for its generous initiative, the
Department regrets not to have been earlier informed thereof, It
was clear to this Government that in most, if hot in all, Latin
American countries concerned neither consent to exchange nor even
simply recognition of documents could be obtained unless it is
understood that the governments concerned are not expected physi-
cally to admit these persons. The Absence of such assurances in
the Vatican approach has presumable caused the Latin American
countries to reply as reported and Spain to suspend protection
of persons involved. The result was the deportation of 238 such
Jews from Civilian internees camp at Vittel and imminent danger
to all of them, reported to number several thousands.
On April 10, the following cable was sent to Minister Harrison:
QUOTE Although the motives of the Germans in according
better treatment to Jews of Polish origin holding passports
and other documents issued in the named of Latin American
countries are not too clear, it would appear that they in-
clude (1) some hope that they might be considered exchange
material against Germans in the Western Hemisphere and (2)
some fear that their ill-treatment might afford the Latin
American countries a pretext for further limiting the freedom
and economic activities of Germans resident in such countries.
The measure reported in your 1958 of March 30 may be
an indication that Germany is beginning to dbubt whether
such Jews are considered exchange material and whether their
treatment would affect the treatment of Germans in Latin
America. This Government regards it as essential that these
doubts be promptly and effectively disspelled.
Accordingly, please request the good offices of the
Swies Government in informing the Germans that this Govern-
ment is undertaking discussions with Latin American coun-
tries for a further exchange of Germans in the Western
Hemisphere for persons in German-controlled territory and
Regraded Unclassified
99
- 3 -
that in this connection, the United States consideres
that all persons in Vittel and elsewhere holding passports
and other documents issued in the names of Iatin American
countries will be eligible for such exchange.
Simultaneously, please request the appropriate Swiss
authorities to advise the Germans that in the meantime this
Government expects that these persons will be accorded the
same rights, privileges and immunities that the German
government expects will be accorded to Germans in the
Western Hemisphere. You may add that a considerable mumber
of German civilians interned by various Latin American coun-
tries have been placed by such countries in the custody of
the United States and are presently in such custody within
continental United States. UNQUOTE
Simultaneously, we cabled our missions in Latin American coun-
tries concerned:
QUOTE Minister Harrison at Bern has informed us that
the Swiss Foreign Interests Division has advised him infor-
mally that the Spanish government had been requested by
the Germans to inquire into the bona fides of certain
Latin American passports, held by internees in enemy-
controlled territory and that the Latin American govern-
ments have denied responsibility as well as any claims
of the persons holding such passports. Please approach
approprate officials of the government to which you are
accredited and inquire whether it has received any such
inquiries through the government of Spain or otherwise from
the Germans with respect to the gelidity of passports held
by such internees and if such inquiry has been made, please
ascertain the nature of the response, if any.
In view of the perilous situation in which these
internees find themselves, the conclusion has been reached
that perhaps the only way of safeguarding the lives of to these
unfortunate victims of Nazi persecution is forthwith
initiate through proper channels negotiations for an exchange In
of nationals for which these people will be eligible.
will physically admit any such persons into its territory
pected that the government to which you are accredited
contemplating such exchange negotiations, it is not ex-
even on a temporary or tentative basis. This Government
ments necessary to route these persons to places elsewhere.
is prepared to take full responsibility for all arrange-
Proceeding on this basis, please approach the govern-
Regraded Unclassified
100
- 4 -
ment to which you are accredited with the request that
it give its approval to the Government of the United
States approaching the German government through appropriate
channels with a view to initiating such negotiations.
Please also advise appropriate officials of the govern-
ment that similar requests are being made of other Latin
American countries, it being the hope of this Government
that it will be put in a position to initiate exchange
discussions on & hemispheric basis. Please also advise
such officials that in any exchange negotiations that
may be entered into, it is of course understood that
unquestioned citizens of the United States and of the
Iatin American conntrieswill be considered by this
Government as being in a category entitled to priority
over others.
Please also request the government to which you
are accredited, on humanitarian grounds, affirmatively
to approach the German government through the protecting
power with a demand that the lives of all persons holding
passports issued in its name or claiming its citizenship
on the basis of consular documents be safeguarded and
that they be given all rights privileges and immunities
accorded to civilian internees of enemy nationality to
whom the Geneva Convention regarding the treatment of
prisoners of war is currently applied by analogy. UNQUOTE
Furthermore, Ambassador Hayes at Madrid was aked to request
Spanish support in this action.
In conveying the above information to the Holy See, please
express to the appropriate officials this Government's warm appre-
ciation of the Holy See's efforts to rescue persons involved, and
our hope that the Holy See will cooperate with us in this humani-
tarian task by urgently supporting in Latin American and Spain our
steps now detailed to you.
Furthermore, please obtain confirmation of details reported
in Harrison's telegram and clarification of apparent contradictions
contained in two passages of said telegram referring to Paraguay.
In view of extreme urgency of issue involved, prompt action is
necessary. Please keep Department advised of progress. Department
will keep you informed of further steps undertaken in this matter.
Substance of this telegram is being communicated to Apostolic
Delegate in Washington.
April 24, 1944
2:15 p.m.
BAksin:jp 4/21/44
Regraded Unclassified
101
NOT TO PE RE-TRANSMITTED
COPY NO.
"
SECRET
OFTEL NO. 131
Information received up to 10 A.M. 24th April, 1944.
1.
NAVAL
C. in C. Greek Navy reports all mutinous ships at Alexandria
surrendered unconditionally yesterday.
On 23rd. Anzio Port was attacked by 15 Aircraft but no
damage to shipping reported; shelling intermittent.
On 22nd/23rd. Enemy surface forces bombarded Bastia but
caused no damage to harbour.
2.
MILITARY.
Burma. Jananese activity Kohime ^rea decreased. Encounters
with Jenanese Imphal Area produced no material change.
3.
AIR OPERATIONS
22nd. Hamm. amended inclusive air casualties reported enemy
39:3:12 in the air and 6:149 on the ground. Ours 8 Fortresses 17
Liberators 19 Fighters.
22nd/23rd. Dusseldorf 2014 tons dropped approximately two-
thirds incendisry, Good group of fires, two covered by smoke towards,
end of attack. Heavy A/A moderate numerous seerchlights main fighter
activity over town itself,
Brunswick. 729 tons about two-thirds incendiary. Excellent,
concentration round accurate markers; very large fire area reported
by subsequent reconnsissance, No fighters in target area,
Laon. 679 tons of HE two-phase attack against Southern and
markers well placed and good concentrations schieved, Ground defences
Northern aiming points respectively. Excellent visibility no cloud
negligible but some fighters on return journey.
23rd. 1857 Sorties flown against following objectives:-
Military and river bridges 103 tons sirfields and canals 50 tons, Enemy
constructions 324 tons, gun positions Havre 125 tons, rail-
ways casualties reported on the ground 11:0:24. Ours 10 aircraft missing.
Coastal Wellingtons damaged or sank 2 E-boats and set fire to a ship
in convoy off Dutch Coest.
23rd/24th. Aircraft despatched: Sea mining 113 (6 missing)
Brussels 12, Leaflets 11, Mannheim 24 Mosquitoes, Intruders and
bomber support 10. About 40 German aircraft operated over South-
Western counties; 5 were shot down by night fighters. Bombing very
scattered. Some fires at Bournemouth, only slight damage elsewhere,
3 fatal casualties so far.
attacked dropping 458 tons on sircraft factory with very good effect.
Austria. 23rd. Wiener Neustadt, 171 Escorted Fortresses
Enemy casualties reported 19:3:4 ours 2 Fortresses 3 Mustangs.
aircraft factory. Numerous hits in the terget area. 2 Liberators
Wien Schwechet. 140 escorted Liberators dropped 308 tons on
shot down by A/A.
Bad Voslau. 170 escorted Liberators dropned 345 tons on air-
craft damaged assembly by heavy factory. concentrations, Enemy casualties reported 27:8:27,
Photographs confirm objective seriously
ours 5 Liberators, one Lightning.
sirfield Weiner with good Neustadt coverage, One enemy sicraft destroyed 4 Liberator:
North. 31 Liberators dropped 32 tons on
missing,
Regraded Unclassified
102
April 25, 1944
Dear Frank:
As you undoubtedly know, the Fifth War Loen
will open June 12 and extend through July 8. Our
over-all goal of $16 billion is larger then that
for any previous drive, end we must also sell a
greater portion than ever before, #6 billion, to
individuals.
The close cooperation of the Navy Department in
former loan drives has been of great value. During
the Fourth War Loan, our six million volunteers, who
sold more than 69 million separate War Bonds to
individuals, were assisted immeesurably by Navy bands,
speakers end exhibits of equipment.
I should appreciate it very much if you would
arrange for 8 letter or directive to be prepared,
similar to the one sent out for the Fourth War Loen
Drive, on the cooperation between the Navy Department
end the War Finance Program. I might add that our
War Finance people advise me that some of the Nevy
Commandents placed a more restricted interpretation
on the Fourth War Loan directive than was generally
true. I do not want to appeer presumptuous, but if
the suggestion could be contained in the Fifth War
Loan directive that a peak in our wartime expenditures
has been reached which calls for every possible effort
on the pert of the American people end of every agency
thereof, I em sure that it would be invuluable to us.
As before, we will undertake to channel to the
appropriate Public Relations Navel Officers in each
district all requests from State or local War Finance
Committees. Excellent lieison was entablished between
Regraded Unclassified
103
- 2 -
your Department and ours here in Washington in the
Fourth War Loan Drive, and I trust this may be set
up in the same manner for the impending drive.
Sincerely yours,
(Wigned) H. Mergenthau, Jr.
The Honorable Frank Knox
Secretary of the Navy
Washington 25, D. C.
JMMihsh
Regraded Unclassified
BECRE
FORVICTORY
104
TREASURY DEPARTMENT
BUY
UNITED
WAR
BONDS
PROCUREMENT DIVISION
STAMPS
WASHINGTON 25
FICE OF THE DIRECTOR
April 25, 1944
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly report
of Lend-Lease purchases.
A requisition has been received for 79,000,000
square feet of veneer for aircraft construction in
the United Kingdom, and monthly deliveries are speci-
fied for completion by the end of 1944.
Good Director of Procurement
Clifton E. Mack
Regraded Unclassified
105
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
SECRET
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT D. S. PORTS
AS OF APRIL 19, 1944
(In Willions of Dollars)
Administrative
Miscellaneous &
Total
U. K.
Russia
China
Expenses
Undistributed
Allocations
$4738.2
$2292.9
$1877.3
$133.9
$12.6
$421.5
(4724.0)
(2292.9)
(1877.3)
(133.9)
(12.6)
(404.3)
Purchase Authoriza-
$3725.3
$1892.4
$1477.5
$ 82.7
-
$272.7
tions (Requisitions)
(3703.4)
(1890.2)
(1463.4)
(66.4)
-
(283.4)
Requisitions Cleared
$3636.2
$1861.5
$1447.9
$ 61.0
-
$265.8
for Purchase
(3617.7
(1865.8)
(1433.6)
(44.7)
-
(273.6)
Obligations
$3510.4
$1835.4
$1406.2
$ 60.8
$11.1
$196.9
(Purchases)
(3480.3)
(1831.6)
(1398.1)
(44.4)
(11.1)
(195.1)
Deliveries to Foreign
$1961.9
$1246.7
$ 656.6
$ 22.0
-
$ 36.6
Governments at U. S.
(1931.6)
(1235.2)
(639.2)
(22.0)
-
(35.2)
Ports"
#Deliveries to foreign governments at D. S. Ports do not include the tonnage that
is either in storage, "in-transit" storage, or in the port area for which actual
receipts have not been received from the foreign governments.
Note: Figures in perentheses are those shown on report of April 12, 1944
106
EXPLANATION OF DIFFERENCE
SECRET
The decreases in Requisitions Cleared for U. K.
and Miscellaneous, and Purchase Authorizations for
Miscellaneous are a result of adjustments of requisi-
tions to actual contracts.
107
VICTORY
TREASURY DEPARTMENT
BUY
-
STATES
WAR
BONDS
PROCUREMENT DIVISION
AND
STAMPS
WASHINGTON 25
OFFICE OF THE DIRECTOR
April 25, 1944
MEMORANDUM TO THE SECRETARY:
A conference was held with Mr. Allen Coe,
War Goods Price Coordinator of OPA, for the
purpose of discussing proposed general price
regulations bearing on the disposal of surplus
property.
Conferences were held with Mr. H. R. Rinehart,
Secretary of War Service Committee of Distributors
of Production Equipment and Supplies, and with
Mr. E. H. Libbey, National Retail Lumber Dealers
Association, for the purpose of discussing policies
and procedures as they might affect the disposal
of surplus property in these two fields.
Clifton E. Mack
Director of Procurement
Regraded Unclassified
COPY
108
WMCA
Incorporated
America's Leading Independent Station
WMCA BUILDING, 1657 Broadway, New York 19, N. Y.
CIRCLE 6-2200
April 25, 1944
Mr. J. W. Pehle
The War Refugee Board
Washington, D. C.
Dear Mr. Pehle;
I am enclosing herewith
a copy of an open letter which I
addressed to you on my Very Truly
Yours broadcast over this station
on Monday evening, April 24, at 9:30
P. M.
If you care to comment in
any way, I should be very glad to
hear from you.
Very truly yours,
/s/ NORMAN JAY
NORMAN JAY
NJ:KK
Regraded Unclassified
109
Copy
April 24, 1944
DEAR MR. PEHLE:
AMERICA HAS A CONSCIENCE. I THINK WE'RE BEGINNING TO SEE IT
IN THE ENTHUSIASTIC NATION-WIDE SUPPORT ACCORDED THE PROPOSAL ADVANCED BY
SAMUEL GRAFTON, COLUMNIST OF THE NEW YORK POST, THAT THE UNITED STATES
ESTABLISH FREE PORTS FOR EUROPEAN REFUGEES. I THINK WE'RE GOING TO SEE
IT EVEN MORE IF AND WHEN THE PROPOSAL BECOMES A PROJECT AND AMERICA CAN
HEAVE A NATIONAL SIGH OF RELIEF AS IT FORESAKES THE UNNATURAL ROLE IT HAS
PLAYED IN BARRING REFUGEES FROM ITS SHORES.
AMERICA WELCOMES YOUR ANNOUNCEMENT, SIR, THAT THE WAR REFUGEE
BOARD, OF WHICH YOU ARE EXECUTIVE DIRECTOR, IS OFFICIALLY CONSIDERING
THE PLAN. FOR, ASIDE FROM THE COMPARATIVE FEW WHO'VE SWALLOWED THE FASCIST
POISON, WHOSE HUMAN INSTINCTS HAVE BEEN CHILLED BY A STEADY DIET OF
STUBBORN UNREASONING HATE, AMERICANS HAVE BEEN DECIDEDLY UNCOMFORTABLE IN
THE INVOLUNTARY ROLE THEY'VE BEEN PLAYING AS THE CHAMPIONS OF EXCLUSION.
DOING SOMETHING FOR THE UNWANTED OF OTHER LANDS HAS BEEN IN
THE AMERICAN TRADITION SINCE THIS NATION'S BIRTH. AMERICAN HOSPITAL ITI
AND GENEROSITY TO THOSE IN NEED HAVE BEEN OUR TRADEMARKS THROUGHOUT THE
WORLD. YET OUR RECORD IN RECORD IN RECENT YEARS IS HARDLY ONE THAT WILL
BRING PRIDE TO THOSE OF US WHO VIEW HUMAN LIFE AND SPIRIT AS PRECIDUS.
WHO CAN FEEL SORROW AT THE SUFFERING AND ANGUISH TO WHICH FELLOW*HUMANS
IN OTHER PARTS OF THE WOHLD=BEYEN3ELESS AND INNOCENT>> ARE BEING SUBJECTED
BY APHILOSOPHY OF GOVERNMENT THAT HAS MADE BARBARISM A NATIONAL POLICY.
FOR AS ANATION WE'VE CLOSED OUR HANDS, OUR DOORS AND OUR HEARS- AND OUR
EYES TO THE HOLE OF AMERICATINTHE THE HISTORY OF THE WORLD.
Regraded Unclassified
110
+
BUT, SIR, I DONT WANT TO APPEAR TO BE CHAMPIONING THE
LIFTING OF IMMIGRATION QUOTAS OR ANYTHING LIKE THAT. I ONLY WANT TO
ASK, AS MR. GRAFTON DOES, THAT WE DO THE VERY LEAST THAT WE CAN UNDER
THE CIRCUMSTANCES. MR. GRAFTON POINTS OUT THAT WE HAVE A "FREE PORT"
RIGHT HERE IN NEW YORK CITY INTO WHICH FOREIGN GOODS- JUST PLAIN MERCHANDISE,
MIND YOU- MAY BE BROUGHT WITHOUT PAYING CUSTOMS DUTIES. GOODS BROUGHT
INTO IT FROM OVERSEAS ARE DESTINED EITHER FOR TRANSSHIPMENT TO OTHER
COUNTRIESOR FOR TEMPORARY STORAGE HERE. AND MR. GRAFTON ASKS WHY WE
CANT SET ASIDE A "SMALL BIT OF LAND, A KIND OF RESERVATION"FOR HUMAN
BEINGS AS WE DO FOR GOODS. HE MAKES NO FURTHER DEMANDS THAN THAT. HE
MAKES NO PLEA FOR PERMANENT REFUGE OR FOR USEFUL OR NON#USEFUL WORK OR
FOR CITIZENSHIP FOR THESE HOMELESS. HE ASKS ONLY TEMPORARY STORAGE
UNTIL THE WILD WINDS OF WAR HAVE STOPPED BLOWING.
THIS ISNT, AS YOU SEE, A QUESTION THAT REQUIRES ANY RESEARCH.
IN URGING THAT THE WAR REFUGEE BOARD ACT FAVORABLY ON THE PROPOSAL,
NEITHER MR. GRAFTON NOR I NOR ANY OF THE OTHERS WHO ENDORSE THE PROPOSAL,
HAVE TO PROVE HOW INTIMATELY AMERICA'S GROWTH HAS BEEN RELATED TO
IMMIGRATION. FOR AFTER ALL, WHAT IS BEING SUGGESTED IS NOT IMMIGRATION.
WE DONT HAVE TO PROVE THE QUIDUS POINT THAT ASSIMILATING FOREIGN-BORN
INTO AMERICA'S HLOOD-STREAM THROUGHOUT THE YEARS OF THIS NATION'S HISTORY
HAS ENRICHED ALL OF US. FOR WHAT IS BEING SUGGESTED IS NOT ASSIMILATION.
WE DONT HAVE TO PROVE THAT ACCEPTING PEOPLES OF OTHER NATIONS INTO OUR
OWN HAS INVIGORATED OUR CULTURE. .AND HAS PROVIDED THE MANPOWER AND
BRAINPOWER TO BUILD AMERICA INTO THE GREATEST INDUSTRIAL POWER IN THE WORLD.
FOR WHAT IS BEING SUGGESTED IS NOT ABSORPTION.
Regraded Unclassified
111
NO, MR. PEHLE, WE'RE NOT SUGGESTING ANYTHING THAT MIGHT
UPSET OUR NATIONAL POLICY TOWARD FOREIGN-BORN. THAT MIGHT TAKE US INTO
THE REALM OF POLITICS AND GIVE SOME OF OUR NATIONAL HALF-PINTS ACHANCE
TO SOUND OFF ABOUT ALIEN INFLUENCES AND THREATS TO THE EMPLOYMENT OF
AMERICANS AND OTHER EXAGGERATIONS THAT SERVE 80 ADMIRABLY TO COVER UP
THEIR OWN EMPTINESS. AND WE'D RATHER STAY IN THE REALM OF SIMPLE
HUMANITARIANTSM.
WE'D RATHER MAKE IT AS SIMPLE AS FINDING ABABY ON YOUR
DOORSTEP AND TAKING IT INTO YOUR HOUSE FOR CARE UNTIL YOU CAN HAND IT
OVER TO THE PROPER AUTHORITIES. WE'D RATHER KEEP IT AS SIMPLE AND
NON-DEBATABLE AS A RESCUE AT SEAL
SOMEHOW, SIR, THE CIVILIZED PART OF THE WORLD IDESN'T WEEP
FOR THOSE WHO MANAGE TO KEEP A STEP AHEAD OF NAZI BUTCHERY. FRANKLY,
I DONT KNOW WHY. MAYBE ITS BECAUSE THEIR SITUATION HAS NEVER BEEN REAL TO
US. MAYBE TTS BECAUSE WE'VE NEVER EXPERIENCED WHOLESALE SHATTERING OF
HOMES AND DISPERSAL OF FAMILIES. MAYBE ITS BECAUSE WE DONT KNOW HEAT
IT IS TO BE HUDDLED ON A BARGE FLOATING DOWN THE DANUBE. .OR FREEZING
IN SOME MID-EUROPEAN WHEAT FIELD. MAYBE ITS BECAUSE WE'VE NEVER KNOWN
THE TORTURE OF WONDERING WHAT'S BECOME OF OUR KIDS OR WIVES OR MOTHERS.
MAYBE THE HUMAN MIND CANT EMBRACE THE ANFUL HORROR OF IT UNLESS ITS HAD
SOME COMPARABLE EXPERIENCE- AND THANK GOD WE HAVEN'T.
BUT WE WONT HESTTATE LONG IF WE KEEP THE SIMPLE FACT IN
MIND THAT THESE REFUGEES ARE RUNNING FROM DEATH BUT HAVENT ANY PLACE TO GO.
THE LIMEKILNS AND GAS CHANBERS ARE CLOSE BEHIND THEM- AND THEY HIND
THEMSELVES ON A DEAD-KND STREET.
Regraded Unclassified
112
DEATH WITH A GERMAN ACCENT STALES THEIR HEELS- AND GOVERNMENTS WHOSE
FRIENDSHIP THEY HAVE EVERY RIGHT AND REASON TO EXPECT CLOSE THE GATES
TO THE ONLY AVENUES OF ESCAPE.
THEY WANT ONLY A PLACE TO REST THEIR WEARY BODIES. THEY
WANT ONLY TO FEEL THAT THE MURDERERS CANT PLAY CAT-AND-MOUSE WITH THEM
ANY MORE. THEY WANT ONLY THE SMALLEST POSSIBLE MEASURE OF SECURITY. ...
A WORD THAT HAS COME TO HAVE NO MEANING AT ALL FOR THEM SINCE THE HAZIS
OVERRAN THE BAIXANS.
WE'VE GOT IT IN OUR POWER, SIR, TO SET UP THESE "FREE PORTS"
FOR REFUGEES AND THUS TO ENCOURAGE ALL OTHERS OF THE UNITED NATIONS TO DO
LIKENISE. WE'VE GOT IT IN OUR POWER TO RELIEVE TO SOME SMALL EXTENT AN
INCOMPREHENSIBLE SUFFERING. WE CANT DO ANYTHING ABOUT THE MILLIONS
WHO HAVE PERISHED OR HAVE BEEN ENGULFED IN THE NAZI WAVE. BUT WAN WE
TURN OUR BACK ON THOSE WHO STILL LIVE? CAN ME. WHEN THE SOLUTION IS
TO TREAT THEM WITH THE SAME CONSIDERATION- AND NO MORE- THAT WE GIVE TO
MERCHANDISE?
I THINK YOU'LL FIND THE ANSWER, MR. PEHLE, INSCRIBED ON THE
STATUE OF LIBERTY. IT GOES:
"GIVE ME YOUR TIRED, YOUR POOR, YOUR HUDDLED MASSES YEARNING
TO BREATHE FREE- THE WRETCHED REFUSE OF YOUR TERMING SHORE. SEND THESE,
THE HOMELESS, TEMPEST TOST TO ME. I LIFT MY LAMP BESIDE THE
GOLDEN DOOR."
VERY TRULY YOURS,
WORMAN JAY
Regraded Unclassified
113
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
SECRETARY OF STATE, WASHINGTON
TO:
AMREP, Algiers,
DATED:
April 25, 1944
NUMBER: 1253
SECRET
FROM WAR REFUGEE BOARD TO AMBASSADOR WILSON AND ACKERMAN
We have just received report from Schwarts in
Lisbon that French are refuging to accept in
Lyautey Sephardic Jews arriving in Spain after March 1, 1944.
Report states further that 50 Sephardics now in
Perpignan, Fraace, awaiting admission into Spain and
others still on route will be excluded under this
ruling.
Such a ruling would cause breakiown in plans to
rescue Sephardie Jews still in Nasi territory, as
Spanish Geverament will do nothing to rescue Sephardics
unless assured that they will be removed from Spain
seen after arrival. If after investigation you feel
report is accurate, please take up at once with Comite
representatives indicating unfortumate effects of such
a step.
Schwarts has advised Beckelman concerning matter.
THIS IS WEB ALGIBRS CABLE NO. 5
HULL
Regraded Unclassified
114
016-220
Algiere
This telegram must be
paraphrased before being
Dated April 25, 1944
communicated to anyone
other than a Government
Rec'd 3:18 26th
agency.
(BR)
Secretary of State,
Washington.
1361, April 25, 3 P.M.
FOR WAR REFUGE BOARD FROM ACKEHMAN WAR REFUGES
NO. 15.
Can you advise on present policy with respect
to immigration to United States of stateless persons
especially those of military age and those who have
been of assistance to Allied forces over here. Repre-
sentative of American Friends Service Committee has
just called to By attention cases of Gerard and Hans
Schmidt who are threatened with internment by Frenck.
Immigration applications have been on file since 1943
and are apparently well supported by American officials
over here. Suggest you inquire into these cases and
advise promptly. There are several similar cases
which may arise in near future and knowledge of United
States policy will help in solving them.
CHAPIN
RR
Regraded Unclassified
115
AIRGRAM TO AMERICAN EMRASSY IN SANTIAGO, CHILE
Regraded Unclassified
Department and Var Refugee Beard are informed that a
certain number of Jevs, mestly of Polish origin, now in German-
controlled territory, hold passports and consular documents
issued in the name of Chile. It is requested therefore that
you attempt to obtain cooperation of Chilean authorities in
American efforts to save these people in the same manner in
which the coeperation of other Latin American countries has
been requested, whose documents are found to have been issued
to Jews in German-held territory.
To this and, circular airgrams of March 31, 1:08 p.m.,
of April 10, 11:00 Molley and of
are
being repeated to you, and you are requested to take action
in accordance therewith.
Department understands that Vatican had also attempted
to work out relief measures for Jews in German-held territory
holding Chilean documents. Apparently, the question of
eventual immigration as result of pessible exchange was
raised in addition to the question of recegnition of documents.
Chile is reported to have replied thatt instructions to verify
and recognise passports have been issued.
Please verify above information and emphasize that
Depa rtment's request does not (repeat net) involve immigration
but, on the centrary, contains assurances that Chile will
not (repeat not) be expected to admit persons concerned over
on a temporary basis. Accordingly, we hope that Chile, in
the interests if humanity. will postpone any questioning of
said documents, measwhile requesting Germans to accord holders
treatment to which Chileans are entitled, and will also agree
to the persons concerned being considered exchange material.
In the light of the above assurances, please impress upon
the Chilean government the extreme urgency of acquiescing in
our requests and of acting upon them without delay. You should
impress upon Chilean efficials that since failure to net would
almost certainly spell death for the persons involved, and that
since no (repeat ad) responsibilities or obligations would
result for Chile from acquiescence is our requests, we would
be sorely disappointed if Ohilean authorities would not (repeat
not) whole-heartedly cooperate with our efforts to save these
people.
Please advise Department of the result of your efforts.
............
April 25, 1944
4:15 pollo
BAksint jp
4/25/44
116
CONFIDENTIAL
AIRGRAM
FROM:
Tegucigalpa, Honduras
NO: 4-163
DATED: April 25, 1944, 5:30 p.m.
REC'D: May 1 8 a.m.
SECSTATE
WASHINGTON
A-163, April 25, 5:30 p.m.
Department's circular airgram of April 20, 1944, 7:35 p.m.
concerning refuges children under 16 years of age.
The matter was discussed with the Minister for Foreign Affairs
this morning. He appeared to be personally sympathetic to the sug-
gestion, but stated that decision must rest with President Carias,
whom he promised to consult.
(Se the Department issure, all matters of any importance are
referred to President Carias.)
According to the official census of 1940, some 52.4 percent of
all Hondurans over 7 years of age are illiterate, and 54.5 persent
of the tdml pepulation are illegitimate. These facts, coupled with
the general poverty, realt in an enormous number of neglected children;
in fact, I have never seen any country where children receive less care
and attention. Bone years age a group of charitable women founded an
orphanage known as the "Cass del Nino", where inmates now number 69,
all under 13 years of age. This institution receives a small subsidy
from the Government, but is, of course, unable to care for more than
a very small percentage of the needy children.
Leaders of the Banduran Jewish residents (there are approximately
185 Jewish refugees in Henduras) state that they are without financial
resources to care for additional children, but that they could possibly
undertake to do so (perhape in an orphanage which might be established)
at a cost of apperximately 20 to 25 U.S. dollars pr child per month.
They state that there would be little.future for refugee children in
Honduras, since educational facilities are very limited and economic
opportunities for persons without capital are said to be lacking.
I as inclined to believe that the Honduran Government might
possibly be persuaded to accept a few refugee children, provided
there were an adequate advance financial guarantee. Without such
guarantee, the prespects are not good.
FAUST
711 SC
JBFihk
Transmitted via airmail pouch closing 1:30 p.m., April 26, 1944.
Regraded Unclassified
117
AIRGRAM
CONFIDENTIAL
FROM: American Embassy,
Mexico City.
DATE: April 250,1944
REC'D: April 28 4 p.m.
SECSTATE
WASHINGTON
I have to acknowledge the receipt of the Department's
confidential circular sirgram of April 15, 79.m., with
further reference to the Department's circular airgram of
January 26, 7 and to subsequent communications on
refugee matters. The Department requests the Embassy to
approach the Mexican Government and inform it of the sub-
stance of the airgram under reference and to endeavor to
secure its action vis-a-vis the Swiss Government along
preliminary lines of our own action with respect to a
specific number of visas which the Mexican Government
may be prepared to authorise its representatives to grant
to refugee children. The Department requests a report by
telegraph as to whether this suggestion is being favorably
received by the Mexican Government, and if 80 information
as to the number of children it is prepared to admit,
Although the attitude of the Mexican Government with
respect to the reception of refugees has been fairly
liberal, it is my belief that the Mexican Government is
not particularly interested in receiving any considerable
number of refugees from Europe either during or after the
war. This impression I have gathered through confidential
conversations from time to time with high officials of the
Mexican Government when I have discreetly Explored this
situation, The probabilities are that the Mexican Government
will be rather loath to commit itself and probably rather
slow to commit itwelf.
In order to secure anything like a favorable reception
towards the suggestion contained in the Department's sirgram
under reference, it will be necessary to prepare the ground
carefully in the Mexican Government and among the highest
officials. I an taking the appropriate steps to this end
and I personally shall not feil to discuss this matter.
for reasons
Regraded Unclassified
118
- 2 -
For reasons which are too numerous to enter into in
this airgram, no immediate reaction from the Mexican
Government may be expected on this matter. I shall,
however, not fail to take it up and endeavor to
secure as receptive and as favorable an attibude as
possible.
I shall give this matter my personal attention
and shall not fail to keep the Department informed
of any developments.
George S. Messersmith
GSM
800-Refugees
GSM:fm
Regraded Unclassified
119
CABLE TO LISBON
To Minister Norweb from War Refugee Board
Re your 1208. State Department is arranging seven dollar per diem
for personal expenses payable directly from Embassy to Dexter on
reimbursable basis in same manner as administrative expenses.
THIS IS WRB LISBON CABLE NO. 5
April 25, 1944
4:15 p.m.
WStewart; pdk 4/25/44
Regraded Unclassified
120
AIRMAIL
No. 431
EMBASSY OF THE
UNITED STATES OF AMERICA
Lisbon, April 25, 1944
Subject: Transmitting Memorandum to War Refugee Board
on Repatriation of Refugees After the Var
The Honorable
The Secretary of State,
Washington
Sir:
I have the honor to transmit herewith a memorandum
prepared by Dr. Robert C. Dexter, Special Attache to the Embassy
for refugee matters, regarding repatriation of refugees after
the war. Provided the Department perceives no objection, it
would be appreciated if the memorandum would be forwarded to the
War Refugee Board.
Respectfully yours,
For the Ambassador:
Edward S. Crocker
Counselor of Embassy
Enclosures:
Memorandum
300
RCD/mvd
Regraded Unclassified
121
Enclosure to despatch no. 431 dated April 25, 1944,
from the Embassy at Lisbon.
Memorandum to the War Refugee Board
from Robert C. Dexter
On page 3, paragraph headed War Refugees, War
Radio Bulletin no. 198, there is a sentence to the
effect that UNRRA will handle repatriation of refugees
to their own country after the war. The question
immediately arises here whether this repatriation
includes the transportation of Jewish refugees,
children and adults, to Palestine. This is not
technically repatriation, but it is quite clear that
such individuals, the children particularly, will not
return to the country of their origin. If UNRRA
should include these people in their repatriation,
just what is the mechanism by which arrangements may
be made and funds secured? If UNRRA should not
include them, the arrangements will have to be made
here from the Palestine Office or HICEM. We should
appreciate advice on this point.
RCD/mvd
Regraded Unclassified
122
HON-185
PLAIN
Lisbon
Dated April 25, 1944
Rec'd 11:22 p.m.
Secretary of State,
Washington.
1343, twentyfifth, 5 p.m.
VEB number 6. FOLLOWING MESSAGE IS FROM JOSEPH
SCHWARTZ FOR WAR REFUCER BOARD AND LEAVITT, JOINT DISTRIBS
UTION COMMITTEE NEW YORK.
*36 Turkish repairiates from Greece arrived Istambul
receiving our full assistance. Small group Portuguese
nationals new Greece may be deported unless Portuguese
Government intervenes. Authorities here being approached
undertake necessary stops. Similar situation confronts
another larger group Spanish nationals interned Greece
for deportation. Representations have already been
made by Spanish Minister, Ankara, and ve taking up matter
Madrid but help your end important. "pproximately six
thousand TurNish nationals Frince whose status repat-
riation uncertain new in precarious situation. "sbas-
sador Steinhart infermed and assume will de everything
possible but important pressure from Washington be
applied this situation if deportation this large group
to be avoided. For your information. International
Red Cross ship RELLACITTA arrived yesterday Istanbul
from. Bumania carrying one hundred thirty children
twenty escerts".
NORWEB
LMS
Regraded Unclassified
123
LO - 291
Madrid
This telegram must be
paraphrased before being
Dated April 25, 1944
8 nmunicated to anyone
other than a Governmental
Rec'd 11:33 a. 26th
agency. (scoo)
Secretary of State,
Washington.
1433, April 25, 8 P.M.
FOR PEHLE WAR REFUGES BOARD
Oliver says cannot accept appreciated effer, adding
that volume Economic Warfare work continues heavy and
no readily available trained substitute.
HAYES
RR
Regraded Unclassified
124
PARAPHRASE OF THENGRAM SENT
Regraded Unclassified
FROM:
Secretary of State, Washington
TO:
American Legation, Stockholm
DATED:
April 25, 1944
NUMBER:
749
SECRET
WAR EXPUGES BOARD SENDS THE FOLLOWING FOR JOHNSON
AND OLSEN.
Reference is made to your telegram of April 11, 1944,
no. 1235.
The importance of Hellsted's statement concerning
extent of danger from Gestape in Finland to many Germans,
Swedes and others is appreciated by the War Refuges Board.
The Board is charged vi th rescuing "the victims of enemy
opression who are in imminent danger of death" regardless
of religion, nationality or stateless status. Accordingly,
the Board would varaly welcome Swedish action to afford
resoue to all groups in Finland which would be especially
endangered as the result of increased German influence.
Concerning Hellsted's remark that permission to
refugees and others to enter Sveden would amount to die-
crediting Finnish Government, the Board suggests that you
refer him to Dohemn's statement reported in your cable
20e 908 to the effect that the Finnish Government itself
has applied for admission of Jewish refugees.
With respect to the questions reported in your cable
no. 1235, the Board holds that all persons referred to
in our 726 of April 21 are in danger. It is prepared to
make arrangements for the evacuation from Sueden, as soen
as practicable, of all persons, other than Swedes, who my
be accorded refuge in Sweden, and for the maintenance in
Sweden of such refugees who cannot claim the support of
their governments.
The Board approciates the action taken by Sveden
(reported in your telegram of April 21, 1944, no. 1379)
in authorising ons-handred visas to Central Buropean refgees
now in Finland as a starter. The Board 10 deeply concerned
about the danger threatening 113 Jewish refugees from
Germany and Austria and about 2600 others referred to in
our cable of April, no. 1724. The Board fully supports
year representations reported in your telegram of April 8,
1944. no. 1209.
In light of your cable no. 1379 referred to above, 11
is assumed by the Beard that the Hellsted statement does
not modify is any vay the confidentia)(asurences given
by Bobeman......
125
- 2 -
by Boheman and reported in your cable no. 908. Please
obtain confirmation of said assurances and, should you
consider that danger is imminent, please press for immediate
action.
Reference is made to Olsen's no. 8. The Board is
gratified by favorable Swedish reaction to his appoint-
ment and the statements made to the press are approved
by the Board.
The foregeing is WEB's cable no. 4.
HULL
Regraded Unclassified
126
THEREGRAM SENT
DSH
April 25, 1944
This tolegram must be
paraphrased before being
8 p.m.
communicated to anyone
other than a Government
agency. (BR)
AMLEGATION.
STOCKHOLM.
750
FOR THE MINISTER AND OLSEN FROM WAR REFUGES BOARD.
WRB no. 5
Please deliver a paraphrase of the following message
from War Refuges Board to Rabbi W. 5. Wolbe, 11 Olofsgatan,
Stockholm, Swedent
QUOTE Gravely disturbed your report of Lithuania. Cable
War Befugee Board for us through American Legation your rescue
plans and if you can utilise funds for relief and resoue of
Rabbis and religious leaders in Lithuania. Have cabled
85.800 Swice france to Rabbi Shaulevits through Switserland.
Vasd Habatsalah Emergency Committee, Rabbie Aaron Kotler and
Abraham Kalmanowits UNQUOTE.
HULL
(GHK)
HULL
WHB:GLM:KG
VE
WT
SWP
4/22/44
Regraded Unclassified
127
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington,
TO:
AMLEGATION, Steckholm
DATED:
April 25, 1944
NUMBER:
755
SECRET
FROM WAR REFUGEE BOARD TO MINISTER JOHNSON AND OLSEN
It has been reported that several Polish ships
carrying feed and clothing originally intended for
pelish civilian pepulation have been tied up for
some time at Steckholm and that their cargoes
have either been warehoused or remain in their holds.
Please ascertain if this report is cerrect and,
if so, the names of the ships involved; the nature
and whereabouts of cargeest dates when veyages
interrupted; causes therefor and efforts, if any,
to secure clearance.
THIS IS WEB STOCKHOLM CABLE NO.
6
HULL
Regraded Unclassified
TELEGRAM SENT
April 25, 1944
9 P.M.
This telegram must be
paraphrased before being
communicated to anyone
other than a Government
agency. (BR).
AMLEGATION,
STOCKHOLM,
756
TO JOHNSON FROM THE WAR REFUGEE BOARD.
Temporary employment as requested your 1355 April 19
of Miss Toue Filseth at $3000 per annum and Miss Ulla Afvirsen
at $1440 per annum authorised. This is WEB Stockholm cable
no. 7. Olsen should send personnel information promptly.
You will be informed subsequently by Department as to manner
in which salaries should be paid.
HULL
(GLW)
WHB:GLW:KG
NOE
A-8/3 PA S/CR
4/25/44
Regraded Unclassified
129
THEIGRAM SENT
DSH
April 25, 1944 RESTRICTED
This telegram must be
paraphrased before being
4 p.m.
communicated to anyone
other than a Government
Agency.
(BR)
AMLEGATION,
BEHN.
1420
TO THE MINISTER FROM WAR REFUGEE BOARD.
WEB no. 4.
Please deliver a paraphrase of the following message
from War Refugee Board to Isaac Sternbuch, Postfach 168,
St. Gallen, Switzerlands
QUOTE Greatly pleased with your April 7th message.
Suggest necessity that such couriers be supplied with
larger sume and that such funds be given to outstanding
personalities, leaders of communities and former heads beof
Yeshivoth to save themselves in whatever possible manner.
Ready supply you additional funds on request. Vaad Hatsalah
Emergency Committee Rabbie Resenberg Kotler Kalmanowits
UNQUOTE.
HULL
(GHK)
HULL
WHB:GLW:KG
VE
SVP
4/22/44
Regraded Unclassified
130
TELEGRAM SENT
GMY
April 25, 1944
This telegram must be
paraphrased before being
3 pollo
communicated to anyone
other than a Government
Agency.
(BR)
AMLEGATION,
BERN.
1428
FOR THE MINISTER FROM WAR REFUGEE BOARD.
Your 1754 delayed and just received by War Befugee Board.
Mc01elland's appointment Special Attache on War Befugee Board
matters approved effective immediately. H, should receive base
salary of sixty-five hundred dollars per annux and seven dollar
per diem allewance effective when he assures duties. Salary and
per diem payments, as well as miscellaneous administrative expendi-
tures such as travel, elerical staff if needed, office supplies
and quipment, and rental if nemessary, should be paid directly by
the Legation through usual channels, for which Department will be
reimbursed by War Refugee Board here. In addition, ten thousand
dollar credit in confidential funds for McClelland from President's
Emergency Fund being established at once for which McCle lland will
be responsible to Pehle alone. These confidential funds are not
subject to usual government disbursing requirements but McClelland
should keep careful record and obtain receipts where possible.
These funds will be remitted on request through the Legation.
These funds my be used at Mc01elland's discretion but should not
(repeat not) be used for administrative expenses of the sort being
handled through the regular channels of the Legation. McClelland's
duties are as described in our 659. Let us know at once of any
obstacles.
HULL
WHB:GLM5KG
VII
WT
(GHK)
4-3/3
FA
4/22/44
Regraded Unclassified
COPY:DCR:AGH
WAR REFUGEE BOARD
131
(Mr. Pehle)
TELEGRAM SENT
This telegram must be
April 25, 1944
paraphrased before being
communicated to anyone
other than a Government
8 p.m.
agency.
(BR)
AMERICAN LEMATION
BEEN (SWITZERLAND)
1434
FOR DAYMONT FROM ALLEN
THE THOUSAND DOLLARS BRING MADE AVAILABLE TO YOU IN
SWISS FRANCS THROUGH THE SWISS NATIONAL BANK FOR ROSWELL D
MCCLELLAND VAR REFUSHE BOARD ON BASIS VOUCHER SUBMITTED
THIS OFFICE DO NOT REFLECT IN YOUR ACCOUNTS BUT TAKE RECEIPT
FROM MOOLELLAND FOR LATER ATTACHEMENT TO VOUCHER ADVISE
MOOLELLAND FUNDS ARE CONFIDENTIAL.
HULL
(PTM)
ACL:FB
Regraded Unclassified
132
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, #ashington
DATED:
April 25, 1944
NUMBER: 2462
SECRET
It is requested by Freudenberg that the following
information be given to the Committee:
PS French Protestant Associates have aided 127 women,
263 men and 30 children to escape to Switzerland since
summer of 1940. It is believed by , that 100 or 200 more
similarly assisted b ut not registered. The number of per-
sons, especially younger men, assisted to escape to Spain
is unknown but , believes at least several hundreds.
Several thousands have been hiddem and cared for.
It is emphasised by 7 that to avoid endangering
organisation, above information must be kept strictly
secret.
HARRISON
Regraded Unclassified
133
TELEGRAM SENT
This telegram must be
April 25, 1944
paraphrased before being
communicated to anyone
4 p.m.
other than a Government
agency. (CRAY)
AMEMBASSY,
ANKARA.
363
FOR THE AMBASSADOR FROM WAR REFUGEE BOARD.
WEB no. 29.
Following from Paul Baerwald of the American Jewish
Joint Distribution Committeet
QUOTE Deeply grateful your sympathetic understanding and
cooperation in relief and unfortunates. Behalf
Joint Distribution Committee wish extend to you sur appreciation
for your kind assistance UNQUOTE.
HULL
(GLW)
WHB:GLW:KG
S/CR
-
SWP
4/22/44
Regraded Unclassified
134
ORIGINAL TRXT TO TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Imbassy, Ankara
DATED:
April 25, 1944
NUMBER: 366
CONFIDENTIAL
This is WHB cable to Ankara no. 28.
As previously advised, you should effect in Turkey all
insurance required by charter for ss TARI except war risk
on vessel. 4g indicated in our no. 306 of April 8 war risk
on vessel will be placed here through War Shipping Adminis-
tration, Advise us immediately when TARI is ready to de-
part in order that war risk insurance can be placed here.
This matter has been discussed with Hirschmann who is in
complete accord.
HULL
Regraded Unclassified
135
NCB-336
Ankara
This telegram must be
paraphrased before being
Dated April 25, 1944.
communicated to anyone
other than a Governmental
Rec'd 2:19 p.m., 26th
agency.
(SR)
Secretary of State,
Washington.
746, April 25, 11 P.E.
FOR WEB FROM THE AMBASSADOR ANKARA, No. 46.
The Bulgarian 88 BELLACITTA arrived in Istanbul
yesterday afternoon with 152 Jewish refugees on board.
As stated in my telegram 713, April 19, I do not
Anticipate any difficulty in arranging for the prompt
transit of these refugees to Palestine.
STEINHARDT
Regraded Unclassified
136
PROPOSED TELEGRAM TO AMERICAN CONSUL GENERAL, ISTANBUL
War Refugee Board most appreciative your reports on
conditions and refugees problems in Greece. Reference your
despatch 2680, March 18, Board would welcome further
development by you your suggestions for evacuation Greek
Jews and non-Greek refugees with cooperation BAM and Allied
escape services. Board believed it can arrange for funds
and such additional assistance as may be necessary to permit
escape from Greece victims of enemy oppression who are in
imminent danger of death, regardless of their religion,
nationality or stateless status. Please telegraph estimate
amount required to initiate your proposals.
Your cooperation in this matter will be most appreciated.
Repeated to Ankara and MacVeigh at Cairo.
April 25, 1944
4:15 plus
MStandishilom
4-23-44
Regraded Unclassified
137
AIRGRAM 90 AMERICAN EMPASSY AT MONTEVIDEO, URUGUAY
Department and Var Refuges Board are informed that a
certain number of Jews, mostly of Polish origin, now in German-
controlled territory, hold passporte and consular documents
issued in the name of Uruguay. It is requested therefore
that you attempt to obtain oseperation of Uruguayan authorities
in American efforts to save these people in the same manner
in which the cosperation of other Latin American countries
has been requested, whose documents are found to have been
issued to Jews in German-held territory.
To this end, droular airgrams of March 31, 1105 p.m.,
of April 10, 11:00 and of
are
being repeated to you, and you are requested to take action
in accordance therewith.
Department understands that Vatican had also attempted
to work out relief measures for Jews in German-beld territory
holding Uruguayan documents. Apparently, the question of
eventual immigration as result of possible exchange was
raised in addition to the question of recognition of documents.
Uruguay is reported to have replied that each case would be
considered individually.
Please verify above information and emphasise that
Department's request does not (repeat not) involve immigration
buts en the contrary. contains assurances that Uruguay will
not (repeat not) be expected to admit persons concerned even
on a temporary basis. Accerdingly, ve hope that Uruguay. in
the interests of humanity, will postpone any questioning of
said documents, meanwhile requesting German to accord holders
treatment to which Uruguayans are entitled, and will also agree
to the persons concerned being considered exchange material.
In the light of the above assurances, please impress upon
the Uruguayan government the extreme urgency of acquiescing
in our requests and of acting upon them without delay. You
should imprese upon Uruguayan efficials that since failure to
act would almost certainly spell death for the persons involved,
and that since 20 (repeat me) responsibilities or obligations
would result for Uruguay from acquiescence in our requests, we
would bs serely disappointed if Uruguayan authorities would
net (repeat not) whole=heartedly cooperate with our efforts to
save these people.
Please advise Department of the result of your efforts.
I
April 25, 1944
4:15 you.
4/25/44
Regraded Unclassified
138
NCB-935
Chungking via NR
This tologram must bo
paraphrased boforo boing
Dated April 25, 1944
communicated to anyono
othorn than a Governmontal
Roc'd 9:58 a.m.
agency. (BR)
Secrotary of State,
DEPARTMENT OF STATE
DIVISION OF
Washington.
APR 2 6 1944
726, April 25, 9 a.m.
COMMUNICATIONS
TO SECRETARY OF THE TREASURY FROM ANDERECORDS
My 591, April 1. Dr. Crossy informs mo ho has
received cable from his home offico according to which
you would not appear to have received my 591 which am
therofore repoating:
"591, April 4, 10 a.m.
TO SECRETARY OF THE TREASURY FROM ADLER.
Dr. Cressy of National Christian Council informed
mo that ho had boen advised from Now York that tho
Treasury would have no objection to the sale of United
Statos dollar drafts to reputable business organizations
and individuals to be paid into blocked accounts in the
United Statos provided Foreign Exchange Control
Commission hero wore not opposed. Crossy also said
he had boon instructed to take up question with mo.
Accordingly I informally took up the matter vil th Dr.
Kung last Friday; ho indicated that the Foreign
Exchange
Regraded Unclassified
139
-2-#726, April 25, 9 a.m. from Chungking via NR
Exchange Control Commission would have no objection
to missionary, et cotera, organizations acquiring
fapi in the above mannor provided that it was kept
informod of the transactions."
Crossy also informed mo that University of
Nanking now urgontly requires CN and would like to
carry out a transaction of the kind contemplated.
I 800 no objection to Treasury's liconsing this
transaction.
GAUSS
BB
Regraded Unclassified
140
TELEGRAM SENT
LC
April 25, 1944
This telegram must be
paraphrased before being
3 a.m.
communicated to anyone
other than a Governmental
agency. (BR)
US URGENT
AMEMBASSY,
LONDON.
3288
FOR THE AMBASSADOR.
The Secretary of the Treasury has requested that
I transmit the following message to you:
QUOTE I am deeply grateful to you for the help
you gave us in arranging matters in London. It was
important to be able to inform the Congressional com-
mittees that experts of the United Nations, including
the U.K., the U.S.S.R. and China, have agreed with us
on a Joint Statement recommending the establishment of
an International Monetary Fund.
Please deliver the following personal message to
the Chancellor of the Exchequer.
INNER QUOTE 1. I wish to express my sincere thanks
for your message of April 18, and for your friendly
consideration
Regraded Unclassified
141
-2- #3288, April 25, 1944, 3 a.m., to London
consideration of our views as expressed in my earlier
messages to you.
2. The Joint Statement was well received in the
seven Congressional committees and particularly in
those of the Senate. The press has given prominence
to the Joint Statement. With reference to paragraph
2 of your message, you may be interested in this
extract from my statement to the Congressional committees
and the press:
SUB QUOTE The tentative proposals that have been
under discussion by the technical experts are part of
El program for cooperation on international economic
problems among the United Nations. The objectives of
this program are the expension and development of
international trade, the restoration of international
investment for productive purposes, the maintenance
of stable and orderly exchanges. Through these means
we can contribute to a high level of employment and
production. The establishment of an International
Monetary Fund and a Bank for Reconstruction and Develop-
ment are important steps in the attainment of the
objectives of this broad program. END SUB QUOTE.
3. I am glad to note your view that if for any
reason
Regraded Unclassified
142
-3- #3288, April 25, 1944, 3 a.m., to London
reason the contemplated Parliamentary debate is deferred
for an considerable time you would not expect me to
hold back on that account from the action we may wish
to take. While we shall not make any formal announcement
at this time, we shall continue our preparations for a
conference to be convened about May 26.
4. While the text of the Joint Statement will have
reached some governments only recently, the principles
have, of course, been discussed at considerable length
and your
by our/technical staffs with the technical experts of
some 30 countries. I have no doubt that the experts
of these countries will find themselves thoroughly
familiar with the principles of the Joint Statement.
I assume that we are in agreement in our conception
of the nature of the conference which we have discussed.
I have in mind & conference of the type discussed with
your experts last October which would examine the state-
ment of principles and formulate the definite proposals
referred to in the preamble to the joint statement. It
has always been my understanding that the conference
would result in an agreement for the establishment of
a monetary fund, and I hope a bank as well, to be
submitted to the Governments for ratification in accord-
ance with their respective constitutional procedures.
This is the
Regraded Unclassified
143
-4- #3288, April 25, 1944, 3 a.m., to London
This is the procedure I put before the Congressional
committees.
5. I have discussed with Secretary of State Hull
the further steps that should now be taken. We are
agreed that after informal consultation the following
programs should be followed: (E) a drafting committee
of experts from 8 to 10 countries should be convened
in Washington about May 10 to prepare an agenda and
drafts to be considered by a conference; (b) the formal
invitations to the conference would be sent about May 1;
and (c) the conference would hold its first plenary
session about May 26.
The President has informed me that he will appoint
me to head the United States delegation which will
include some members of Congress. It seems to me that
if you could come to the United States at the head of
the U.K. delegation it would provide an excellent
opportunity for us to become acquainted and to go over
our common problems with our colleagues from the Soviet
Union and China. I appreciate that urgent Treasury
business may make it difficult to be away from London
throughout a conference, but it is my earnest hope that
it will be possible for you to come.
6. Because
Regraded Unclassified
144
-5- #3288, April 25, 1944, 3 s.m., to London
6. Because your message reached me too late, I
informed the Congressional committees that we had not
yet completed discussions on the Bank proposal. No
statement of principles on the Bank was released. In
the meantime, Mr. Opie has presented to Hr. White the
views of the British technical experts on the statement
of principles for the establishment of a Bank.
Mr. White informs me that ho believes it should be
possible to reach common ground on these principles.
Further explorations could go forward now through Mr.
Opie, and when your technical representatives arrive
for the drafting committee the remaining points could
be more fully discussed directly with them. We are also
continuing discussions of the Bank proposal with other
countries. END INNER QUOTE. END QUOTE.
The Department and the Secretary of the Treasury
would like your views concerning the Chancellor's
reaction to the above message as soon as possible.
HULL
(MNH)
FMA:EGC
S:MNH:dfb
Regraded Unclassified
145
TELEGRAM SENT
MJB
April 25, 1944
This must be
paraphrased before being
2 a.m.
communicated to anyone
other than a Government
agency. (BR).
US URGENT
AMEMBASSY
MOSCOW
1614
FOR THE AMBASSADOR.
The Secretary of the Treasury has requested that
I transmit the following message to you:
QUOTE I am deeply grateful to you for the help you
gave us in arranging matters in Moscow. It was important
to be able to inform the Congressional committees that
experts of the United Nations, including the U.K., the
U.S.S.R. and China, have agreed with us on a Joint State-
ment recommending the establishment of an International
Monetary Fund.
Please deliver the following personal message to the
People's Commissar of Finance:
BEGIN MESSAGE TO COMMISSAR. l. I wish again to
express my sincere thanks for your cooperation
end for your friendly consideration
of.our
Regraded Unclassified
146
-2-#1614, April 25, 2 a.m., to Moscow
of our views as expressed in my earlier messages to you,
2. The Joint Statement was well received in the
seven Congressional committees and particularly in those
of the Senate. The press has given prominence to the
Joint Statement.
3. While the text of the Joint Statement will have
reached some governments only recently, the principles
have, of course, been discussed at considerable length
by our and your technical staffs with the technical
experts of some 30 countries. I have no doubt that the
experts of these countries will find themselves thoroughly
familiar with the principles of the Joint Statement.
4, I have discussed with Secretary of State Hull
the further steps that should now be taken. We are
agreed that after informal consultation the following
program should be followed: (a) A drafting committee of
experts from 8 to 10 countries should be covened in
Washington about May 10 to prepare an agenda and drafts
to be considered by a conference. (b) The formal invita-
tions to the conference would be sent about May 1.
(c) The conference would hold its first plenary session
about May 26,
The President has informed me that he will appoint
me to
Regraded Unclassified
147
-3-#1614, April 25, 2 am, to Moscow
me to head the United States delegation which will include
some members of Congress, It seems to me that if you
could come to the United States at the head of the Soviet
delegation it would provide an excellent opportunity for
us to become acquainted and to go over our common problems
with our colleagues from the United Kingdom and China.
I appreciate that it may be difficult to be away from
Moscow throughout a conference, but it is my earnest hope
that it will be possible for you to come.
5. Meantime we expect to continue our discussions with
the technical exports of the Soviet Government on both
the International Fund and the International Bank.
End of message to Commissar; End Quote,
Please transmit the substance of the above message
to Molotov and report to the Department and the Secretary
of the Treasury as soon as possible concerning the reaction
of Molotov and Commissar of Finance to the above message,
HULL
FM/ EGC
(MNH)
S MNH: MCW
Regraded Unclassified
GAR-363
PLAIN
148
MOSCOW
Dated April 25, 1944
Rec'd 3:45 p.m., 26th
Secretary of State
Washington.
1423, twenty-fifth.
In addition to the publication in IZVESTIYA of the text of the
joint declaration of the experts concerning the organization of the
international monetary fund, Moscow papers for April 23 publish four
other items on this subject:
One. An eight inch Tass despatch from Washington reporting the
publication of the declaration and summarizing the purposes and
organization of the proposed fund. The itom also cites White's state-
ment that the question of the formation of an international bank is under
study.
Two. Secretary Hull's press conference statement welcoming the
success of the negotiations and calling for accomplishment of the program
outlined before the end of the war.
Three. Secretary Morgenthau's statement to press that Soviet
Union had agreed to plan and that plan had been accepted jointly by all
the United Nations.
Four. A Tass despatch from London quoting the TIMES which warns
against exaggerating the extent of this success and points out that an
expension of international trade cannot be attained through international
monetary agreements if the principle industrial countries do not conduct
an active policy and that the significance of the plan will depend in
great part on the eventual monetary and export policy of the United States
and the planned or random development of American industrial production.
HARRIMAN
WTD
eftcopy
5-1-44
Regraded Unclassified
149
NOT TO BE RE-TRANSMITTED
COPY NO.
11
SECRET
OPTEL No. 133
Information received up to 10 a.m., 25th April, 1944.
1. NAVAL
A Norwegian Submarine off NORWAY on 19th and 22nd
respectively torpedoed a U-boat and a 2,000 ton ship. One
of our motor torpedo boats was sunk yesterday morning as
result of encounter with enemy force off BARPLEUR.
2. MILITARY
BURMA. 22nd. South of IMPHAL Japanese evacuated
KINGPI, but on PALEI-TAMU Road they occupied two features
after determined attack heavily supported by artillery. The
KOHIMA Garrison has been relieved without enemy interference
although still some Japanese activity near KOHIMA-MANIPUR
Road.
3. AIR OPERATIONS
WESTERN FRONT. 24th. 754 escorted U.S. heavy
bombers despatched:
211 dropped 439 tons on aircraft factories and
installations FRIEDRICHSHAFEN - bombing
good on all objectives
193 dropped 260 tons on similar factories near
MUNICH - results good to excellent
275 dropped 570 tons on three airfields with
results good to excellent
37 dropped 77 tons on various targets.
39 bombers and 20 escorting fighters missing. Escorting
fighters reported 74 enemy aircraft destroyed in the air and
59 on the ground. 89 fighter bombers attacked chiefly trans-
port objectives in FRANCE and BELGIUM.
24th/25th. 981 aircraft despatched:
KARLSRUHE
637 (20 missing)
MUNICH
259 (10 missing)
Other objectives 85
Preliminary reports - KARLSRUHE: complete cloud, concentrated
bombing on markers, large fires. MUNICH: clear weather,
huge fires covering very big area.
ITALY From 21stimo 22nd inclusive 744 aircraft
attacked communications in Central ITALY.
OPTEL No. 132 not sent to Washington
Regraded Unclassified
150
April 26, 1944
8:30 p.m.
INTERNATIONAL STABILIZATION
Present: Mr. White
Mr. O'Connell
Mr. Luxford
Mr. Bernstein
Mr. Smith
Mrs. Klotz
H.M.JR: I asked you gentlemen to come down because
this is a pretty important decision to make. To try to
read me a cable over the telephone and then decide
whether you want to hold a world-wide conference, is a
little bit too much. I wanted you all to share the
responsibility with me. Public relations - and there
there are politics in the whole thing - and the Hill -
I am ready for the message as it is drafted.
MR. WHITE: Here it is. (Hands the Secretary
attached draft entitled "Telegram for the President from
the Secretary of the Treasury.")
H.M.JR: Has this been cleared by Mr. Hull?
MR. WHITE: That is what I was informed by Mr.
Collado, that Mr. Acheson, Mr. Pasvolsky and himself
had cleared it. I asked him today if Mr. Hull had
cleared it, and he said yes.
H.M.JR: You first thought that I wanted you to
come to New York.
MR. WHITE: Yes.
H.M.JR: I didn't want you to come to New York.
Do we know this was published in Moscow and Chungking?
Regraded Unclassified
151
- 2 -
MR. WHITE: We know it was published in Moscow and
Chungking, yes. And several other places - Mexico City--
H.M.JR: Now, you keep saying "with the approval."
would you say "with the approval, or "with the concur-
rence"?
MR. LUXFORD: They approved it.
H.M.JR: That is stronger?
MR. LUXFORD: Sure.
H.M.JR: The only thing is, can't I do the thing
without their approval?
MR. WHITE: There is no step that we have taken
that hasn't been with their approval.
H.M.JR: You don't get my point.
MR. LUXFORD: I do. We always want their approval
as long as they approve.
MR. WHITE: No, the Secretary's thought is, does he
want to imply here that he needs their approval rather
than their concurrence.
MR. LUXFORD: I know.
H.M.JR: There is a difference in the word.
Well, I will read the thing through. (The Secretary
reads the attached draft to himself)
It didn't go to the Commissar of Finance. I said
particularly,to the appropriate authorities, do you
remember--
MR. BERNSTEIN: Yes, it went to Molotov and to the
Commissar. We can change it in there.
152
- 3 -
H.M.JR: I don't think it makes any difference,
from the present standpoint.
Now, how is the President going to react to, "(1)
issue formal invitations about May 1"?
MR. WHITE: Standing by itself, it is bad, but taken
together with "These steps, of course, are subject to your
approval" and "Both countries have been advised that a
final decision on a conference rests with you" - he has
already indicated if there is to be a conference, he
wants it in May.
H.M. JR: I see. Well, now look, gentiemen, this is
going to make it taste much better. Do you have a pencil?
With the approval of the State Department, but, of course,
subject to your final approval"--
MR. WHITE: Well, you didn't send the message. This
"with the approval of the State Department" refers to
the message.
H.M.JR: Then where would you put it?
MR. WHITE: Yes, you want to get it first.
MR. SMITH: At the end of that sentence, "...subject,
of course, to your approval."
H.M.JR: Yes, "...we propose to take the following
steps, subject to your approval." "...subject, of course,
to your approval."
MR. WHITE: "Subject, of course," because we didn't
put that in the telegram.
H.M.JR: "Subject, of course, to your approval."
All right? Anybody in disagreement? That make S it taste
different.
MR. WHITE: All right.
153
- 4 -
H.M.JR: "Both countries have been advised that a
final decision on & conference rests with you." That is
all right.
MR. LUXFORD: Take out this sentence, "These steps,
of course, are subject to your approval."
MR. BERNSTEIN: After, "...about May 26."
H.M.JR: Yes, that will be deleted and it will go
right after "consultation - invitations about May 1,
subject to your approval."
MR. WHITE: "Subject to your approval," should follow
the steps.
H.M.JR: Now, how will it be?
MR. LUXFORD: "With the approval of the State Depart-
ment, I have sent & message to the Chancellor of the
Exchequer and the People's Commissar of Finance informing
them that after consultation we propose to take the
following steps, subject, of course, to your approval:"
MR. SMITH: Can't you take out those "abouts"? Why
don't you make it definite - и invitations May 1; ten
countries May 10" - see? You have "about" and "about."
H.M.JR: "Issue formal invitations May 1"?
MR. SMITH: It is all a tentative schedule, anyway.
H.M.JR: I think he is right.
MR. SMITH: Then your May 10, and May 26--
H.M.JR: I think he is right.
(Reading) "Both countries have been advised that a
final decision on a conference rests with you. After we
hear from London and Moscow we should like to go forward
with these steps and have invitations sent in your name
to the Governments of the United and Associated Nations."
154
- 5 -
Instead of saying, "...and have invitations sent in
your name," couldn't we say, 18 and have you issue invi-
tations"?
All right so far?
MR. LUXFORD: Yes.
H.M.JR: "To conform with this close time schedule"--
MR. O'CONNELL: I don't think that has much to do
with it.
MR. LUXFORD: It has as much to do with getting State
on the line as anything else, because Pasvolsky was trying
for the formalities.
H.M.JR: Then you would say, "...with this tight
schedule"?
MR. LUXFORD: All right.
H.M.JR: "To conform with this tight schedule, we are
forced to telescope procedures and disperse with needless
formalities."
"If you approve of this procedure, may we have your
authorization to go ahead." Instead of saying, "may we,"
I suggest, "we would like to have your authorization.'
Would you think we should say, "...your prompt authoriza-
tion"?
MR. BERNSTEIN: The fact that you telegraphed to him
now, indicates that.
MR. SMITH: Why don't you leave that "may we have" and
say, "If you approve this procedure, Secretary Hull and
I can work out many of the details, and so forth? Then
in your last sentence, "May we have your authorization?"
That is the dotted line.
155
- 6 -
H.M.JR: "If you approve this procedure, Secretary Hull" -
no--
MRS. KLOTZ: It doesn't go together.
H.M.JR: "If you approve this procedure" - what did
you say?
MR. LUXFORD: "...we would like to have your prompt
approval."
H.M.JR: I would leave out the word "prompt." I don't
like "may we." How did I put it?
MR. O'CONNELL: "We would like to have your authoriza-
tion,' without saying, "...if you approve."
H.M.JR: No, I think you need that.
MR. WHITE: I think you need that.
H.M.JR: "If you approve, we would like to have
your authorization to go ahead" - "...we would like to have
your authorization by telegram."
MR. O'CONNELL: Or "...would like to be so advised."
H.M.JR: He has been awfully prompt.
MR. SMITH: "If you approve this procedure, we would
appreciate your telegraphing us your authorization to go
ahead."
MR. LUXFORD: Sounds very much like you are trying
to push him into it.
H.M.JR: No, he wouldn't object to that. "If you
approve this procedure, we would like to have your tele-
graphic authorization to go ahead."
MR. SMITH: Yes. Why don't you take that whole
sentence and move it last?
156
- 7 -
H.M.JR: Wait until I read the whole thing, will
you? (Reads to himself)
Now, what do you suggest?
MR. SMITH: I suggest that you leave out, "If you
approve this procedure" - take it out. Then you follow
with, "Secretary Hull and I can work together," and 80
forth, and tell the whole story; then you say, in the
last sentence, "Secretary Hull is in agreement with me
on this telegram. If you approve this procedure, will
you telegraph us?"
H.M.JR: Yes, that is where that belongs.
MR. O'CONNELL: At the very end?
H.M.JR: Yes, that gives them the last thing.
But now let me see, "Secretary Hull and I can work
out many of the details without troubling you" - what
were you going to say?
MR. SMITH: I thought it would be easier to under-
stand if you said, "Secretary Hull and I can work out
the details without troubling you further, but of course,
on all major political matters"--
H.M.JR: No, I prefer it the way it is. I don't
like the word "political."
MR. O'CONNELL: Neither do I.
H.M.JR: "...on all major questions"?
MR. O'CONNELL: "...but on some major matters, such
as the selection of delegates"--
H.M.JR: Say that again.
MR. O'CONNELL: "Secretary Hull and I can work out the
details without troubling you"--
157
- 8 -
H.M.JR: "Secretary Hull and I can work out most
of the details"--
MR. O'CONNELL: "...but on some major matters, such
as the selection of delegates, we will have to trouble
you further."
H.M.JR: Not "trouble," "...we shall refer back to
you for guidance," or, "we shall consult you."
MR. O'CONNELL: He has to actually select the dele-
gates.
H.M.JR: "...we shall" what - -"consult"?
MR. LUXFORD: "...we shall refer back to you." I
think he would want to feel that he was making the deci-
sion on that.
H.M.JR: Well, how does it read, Luxford? You have
been keeping tab.
MR. LUXFORD: Just & minute. "Secretary Hull and
I can work out most of the details without further
troubling you; but of course on all major matters," or
"on such matters as the selection of delegates, we shall
refer back to you."
H.M.JR: I don't like that; say, "...we shail con-
suit you.
MR. LUXFORD: All right.
H.M.JR:. Then what comes next?
MR. LUXFORD: Then you would have, "Secretary Hull
is in agreement with me on this telegram," and then the
sentence we agreed to put last.
H.M.JR: How does that read?
MR. LUXFORD: "If you approve this procedure, we
would like to have your telegraphic authorization to go
ahead."
Regraded Unclassified
158
- 9 -
H.M.JR: Say that again, please.
MR. LUXFORD: "If you approve this procedure, we would
like to have your telegraphic authorization to go ahead."
H.M.JR: I don't like it. Say it again?
MR. LUXFORD: "If you approve this procedure, we would
like to have your telegraphic authorization to go ahead."
H.M.JR: to proceed."
MRS. KLOTZ: You have "procedure" and "proceed."
H.MJR: "...to go ahead," that is all right.
Now let me ask you this, Harry, supposing the Presi-
dent says yes. What are the chances of failure on this
thing?
MR. WHITE: Well, the immediate obstacles, outside
of the President's approval: One, if the Chancellor of
the Exchequer says (a) he can't come himself, but will
send the best delegation they can - I don't think, in
the light of his telegram, he would say, "We cannot
participate," because he has practically said, "We will
adapt ourselves to your wishes," and I don't think he
could go back on that unless Churchill stepped in the
picture; (b) Moscow might likewise take one of two
positions, or both; (1) they may say, The time is in-
opportune; I cannot leave Moscow at this time; and we have
no men," or, "We vill send a delegation"; (2) they may
say, "Before we send a delegation, we want to clear up
the points about which we are in disagreement." All the
points that we are in disagreement, I don't think we would
have any troubie with; they are not insuperable. There
would be some trouble, but we could agree. But one point
we cannot agree on if they stick to their position, and
that is to exclude newly-mined gold from consideration.
Now, if they continue to take that position - they may
come into the conference and insist on that position.
I don't know whether we could compromise it as a possi-
bility. On the other hand, they are not in a good posi-
tion to stand out and be left out of the conference.
Regraded Unclassified
159
- 10 -
I get a little bit the feeling that England would
almost prefer that they didn't come in, but I am not sure.
But that is one of the dangers. The second danger of the
conference, there may be some obstacles outside the
matters which we have enumerated, but I don't think they
are insuperable. I don't see insuperable obstacles out-
side of those I have named.
There may possibly be a number of countries who have
not been consulted on the final draft, who may be obstreper-
ous, and who may not even go along, but my judgment would
be that most of them will, and that there would not be
any insuperable difficulties outside that one in Russia.
But that would be my judgment.
H.M.JR: What I don't understand is this - now, they
call & conference; they come here, and the Russians seem
to kick over the traces - have you followed it? Has any-
body followed it here?
MR. WHITE: I thought they wouldn't even come - the ILO--
H.M.JR: The last two days?
MR. WHITE: They wouldn't come. They say they have
left the League of Nations and they have been invited but
they refused to come.
MR. LUXFORD: But they were only invited as observers;
they didn't invite them to full membership. That is what
the radio said tonight.
H.M.JR: Did the Russians come as full members and
then kick over the traces?
MR. WHITE: I don't think the case is comparable,
Mr. Secretary.
MR. LUXFORD: The radio said "observers," tonight.
H.M.JR: I am asking.
Regraded Unclassified
160
- 11 -
MR. WHITE: I know that they have been invited,
whether as observers or not, and they have so far refused
to attend because they say they have left the League. The
ILO is part of the League, and they haven't made up their
minds to join.
H.M. JR: What you are saying here is, we are not
asking the President to call this conference on May 1
unless we hear to the affirmative from England and
Russia beforehand.
MR. WHITE: No, we leave that open, so it is sus-
ceptible of any interpretation you wish. In other words--
H.M.JR: Excuse me, do you mind if I read this,
please? "After we hear from London and Moscow we should
like to go forward with these steps and have invitations
sent in your name" - after we hear.
MR. WHITE: But it doesn't say "after we hear
favorably."
H.M.JR: If I read that as the President of the
United States as I read it as Secretary of the Treasury,
I certainly would interpret that meaning only if you
heard favorably.
MR. WHITE: After you hear from Russia it may be
80 unfavorable you may not wish to go ahead. That leaves
an out.
H.M.JR: But it is one thing to tell the Russians
the English have agreed before they have, but after all,
this sentence to the President of the United States, as
it means to me - I am tired, but I am not 80 tired that I
can't get the significance of this thing - "After we hear
from London and Moscow we should like to go forward with
these steps and have invitations sent in your name"--
MR. WHITE: May I go ahead, because I wasn't finished
before.
161
- 12 -
H.M.JR: Do you yield?
MR. WHITE: If the Russians reply favorably, then
you would go ahead; if the Russians reply unfavorably,
then you would have to make & decision at that point,
whether you again want to contact the President or go
ahead, or whether you don't.
H.M.JR: Now listen, as the boss, I am going to talk.
I want it understood here tonight before the stenotype
operator, that I don't want to have you fellows putting
pressure on me; that I am a very weak, delicate person; I
can't resist pressure! If England and Aussia say no,
I want to know tonight, before this message goes, what
you, Mr. White, who are in charge of this thing, what you
are going to say. If England and Russia say, We will
not participate in this"--
MR. WHITE: I wouldn't call the conference.
H.M.JR: Supposing Russia says no, alone, and England
says yes?
MR. WHITE: I don't know; I am doubtful.
H.M.JR: well, you have to say yes or no to me to-
night.
MR. WHITE: I don't know. I can't. I would want to
think it over - talk it over. It is a serious step.
H.M.JR: I am not going to send - how about if
England says no and Russia, yes?
MR. WHITE: Definitely not. The conference can't
take place without Angland being present.
H.M.JR: Then the only thing you have to tell me -
I have to know what I am doing before I send this to the
President; I am entitled to know.
MR. WHITE: By all means. The English have practi-
cally said yes.
162
- 13 -
H.M.JR: All right, but if England says no, no con-
ference; if Russia says no, then what?
MR. WHITE: Well--
MR. BERNSTEIN: There is one other case we ought to
consider. Suppose the answers are equivocal from both
places - they don't say yes, and they don't say no?
MR. WHITE: Wait a minute. Let's try to answer the
simpler question - Russia says no. I would be very hesi-
tant about calling the conference, not because they are
important economically, but because it starts off on the
wrong foot. You already have an obstacle to begin with,
and this thing has got to click on all cylinders or it
will sour. So I would be a little bit hesitant about
going forward. I would rather postpone the date and see
what is the trouble.
H.M.JR: Yes, but as of tonight, I have got to nail
you down. Everybody else in the room will have a chance
to talk.
MR.WHITE: I think - though, as I say, I don't come
to that conclusion with the degree of certainty that I
wouldn't be susceptible to changing my mind, but as I feel
now, I don't think I would call the conference if the
Russians said, "We are not going to participate."
H.M.JR: On the record, the answer to my question is
that Mr. white, the head of the technicians says, if the
Russians say no, they will not send delegates -- what
will your advice be to the Secretary of the Treasury?
Should he proceed with the conference or should he not?
I want a clear yes or no.
MR. WHITE: I don't think you should. The answer
is no. We should continue our discussions, but not call
a conference.
H.M.JR: Now you (Luxford) come next.
Regraded Unclassified
163
- 14 -
MR. LUXFORD: Those answers are all right with me,
but I think there are some further facts that should be
on the table, if that is all right with you.
H.M.JR: Look here, look, gentlemen, why did I
call you tonight? I have done everything in my power as
Secretary of the Treasury to supplement White's work.
I am now crossing this bridge tonight, and the President
has a perfect right, as has Mr. Hull - that is why I am
being so careful - when Hull called me on the telephone
the other morning - let me remind you how things go -
Hull calls me up and says, "I hear you are going to call
this conference in July. Is that correct? Somebody told
me."
I said, "No. After all, Cordeil, you yourself
recommended to the President we have it." "Oh, no, I
didn't," says Hull. He said, "I told him that White
persuaded my people that we should have it then. I
didn't tell the President. I simply reported to him
that White persuaded my people. You recommended the
conference. Is that correct?"
He could say that this thing won't work out and will
become a great political issue. "I didn't know this, Mr.
President. Morgenthau persuaded me to do it against my
better judgment."
If he would do that the other day - and you people
can read the conversation - in other words, the Treasury
gang has to stick together, win or lose, and before I
say, "Mr. President, I am going to put you fellows on
the spot. Because, win or lose, he has a right to
say to me, if the man runs again, "Well, Henry, you
advised me badly. You had no right to do this!"
"I didn't read this! I never would have invited
these people if I thought you would have gone ahead
with Russia saying no, and called a conference." I
am explaining this because of what happened the other day,
to my amazement. The President called me on the telephone
and said, "Henry, it is all right. Go ahead with the con-
ference. I never asked him. If Hull will wash his hands
as quickly as that of responsibility, what will he do if
it doesn't go right?
Regraded Unclassified
164
- 15 -
MR. WHITE: He will wash his hands in a minute.
H.M.JR: Am I right?
MR. WHITE: You are wholly right.
H.M.JR: Everybody in the room has 8. chance, but I
didn't want you to think that Morgenthau came down from the
farm and is trying to put each of you on the spot.
MR. LUXFORD: Do you remember the trouble we had the
other night, Mr. Secretary, trying to get these cables to
Moscow and England through the State Department? It was
Pasvolsky over there that was insisting that we had to
address those messages through State Department channels
formally to the Government of both Russia and Moscow. Now,
we had just gotten through with this experience of the
difficulty of getting a yes or no answer when you put it
up to them formaily in that way.
We had the Chancellor of the Exchequer asking us to
call the conference, and he had gone along. Now, what this
is addressed to, you have sent those cables out. If we
get informal replies back from the Chancellor, as well as
from Russia, that they are willing to go along with it, fine.
But we didn't want State to be in a position to say, "Well,
now, look, you have got to get the approval of the British
Government; therefore, you can't go ahead.
H.M.JR: Frankly, what you say doesn't make sense to
me. I don't understand it. If it is important, all right;
if it isn't, you are splitting hairs in quarters.
MR. BERNSTEIN: I think we could put it in more general
terms, Mr. Secretary. I agree with Mr. Luxford. It is
this point: You may get an answer from London, and you may
get an answer from Moscow which doesn't say yes and doesn't
say no, but hinting ahead, "Arrange everything, and we will
probably go along, is the implication. Now, you are very
likely to get some such answer. There is a strong likelihood
of that.
MR. LUXFORD: You will get an answer from the Chancellor
of the Exchequer, "Go ahead. The Chancellor of the Exchequer
Regraded Unclassified
165
- 16 -
would say yes. Pasvolsky was trying to say that that isn't
enough.
H.M.JR: That doesn't bother me.
MR. LUXFORD: That is what we were heading off.
H.M.JR: That doesn't bother me vis-a-vis the President,
what Bernstein said. Now, where did I see you, on the farm?
He feels that the Chancellor was saying, "Go ahead, but
don't ask me too many questions until I am through with
Parliament." See? But that has nothing to do with us,
with Mr. Pasvolsky or anybody else, but I don't want to be
in the position that this cable goes out the way it is
worded, and then White comes around and says, "Look, you
sent it; you have to go through with it." See?
In other words, I feel that in this year England and
Russia have to make up their minds on two vital things for
them in post-war, and this is just as strong a wind: One,
is Russia going to play ball with the rest of the world on
external matters, which she has never done before? And, two,
is England going to play with the United Nations, or is she
going to play with the Dominions? Now, both of these countries
have to make up their minds, and, gentlemen, I am not going
to take anything less than a yes or no from them. I am
not, because this, for them, is a terrifically important
thing, not the monetary conference as such, but what is
their position going to be? And once they come in, then
they have crossed that bridge. And I am not going to take
the sort of thing that Harry was trying to give me. I am
not trying to be personal.
MR. WHITE: What was I trying to give them?
H.M.JR: What I am trying to say is this: I have to
pin you down and take my coat off. I will not take anything;
I want to make my position very clear before this cable goes.
I want a clean-cut yes from the Russians and the English before
I say to the President, "You go ahead in your name and go
out on the end of a limb inviting these countries to come in."
MR. WHITE: I agree with you wholly that you shouldn't
take any risk.
Regraded Unclassified
156
- 17 -
H.M.JR: Wait a minute. I am not running for office.
I haven't the whole post-war problem on my shoulders, but
he has, and I am not going to put him in that position.
MR. WHITE: It isn't that. I mean, we can't afford--
there are enough risks as it is inherent in any international
conference. You can't afford to let the thing go sour because
of inadequate preparation or inadequate assurance before
you start. It is better to bend backwards in that respect.
I agree with that.
H.M.JR: Look, I don't know what was wrong with the
London Economic Conference. None of us in this room had
anything to do with it, but certainly I am not going to get
the President in the position which it took him years to
live down. I don't know who was at fault, Hull, Moley,
George Harrison--
MR. BERNSTEIN: The fault, Mr. Secretary, lies in the
fact that the agenda was written in 1932, and the Conference
took place in 1933.
H.M.JR: I know, but after all, you are advising me.
I have to advise the President. He is away. Mr. Hull says,
"Me, too," but he doesn't stick to it, 80 the President
looks to me. I want a clean-cut understanding with you
people tonight that unless we get a clean-cut answer from
Russia and England, I will not ask the President to call
this conference. And now is the time to settle it.
MR. LUXFORD: That wasn't the big thing we were worried
about, putting that language in there, Mr. Secretary.
H.M.JR: But Harry is a very honest fellow, and Harry
only crossed the bridge within the last fifteen minutes in
his own mind.
MR. WHITE: That is right. We left an out, Mr.
Secretary.
H.M.JR: Am I right, Harry?
Regraded Unclassified
167
- 18 -
MR. WHITE: Quite right, because what we said was this:
"Let us wait until we see the kind of answer we get. If
the answer in both cases is yes, and favorable, there is no
problem." If the answer is something else, then I said we
ought to have a meeting and decide where we go from there.
H.M.JR: I want it decided tonight.
MR. SMITH: Could you do this? You are putting down
8. timetable here. Going through with that timetable would
demand almost an absolute yes or no from Russia. Going
through with it would demand & yes pretty promptly. If
they didn't come through with a yes pretty promptly, you
couldn't go through with that timetable anyway. So why
couldn't you say in this cable that with the assurance of
cooperation we plan that we propose the following steps on
May 10--to propose 80 and so--and on May 26, and 80 forth.
Then if you get into trouble with Russia and England, you
have to reconsider the whole business, anyhow.
MR. WHITE: Well, if the decision is that you are not
going forward unless you do have their assurances on that
basis, then I think that is a good way to handle it.
Now, the only reason I put an if before it is because
I would like you to ask what Luxford and Bernstein think,
see whether they agree with me. I feel that way, but I
feel--
MR. LUXFORD: I would agree with Harry fully, that if
the Russians say, "No soap, no conference.
MR. BERNSTEIN: I would feel the same way, because it
is better not to have a conference than to show up the United
Nations as divided.
MR. WHITE: Therefore, I think you can state in this
cable, which is the thing that troubles you to begin with,
very clearly that what you mean is their approval. If that
is the decision--
MR. LUXFORD: That is fine, but state when you say
approval--Pasvolsky says the Government--
168
- 19 -
MR. BERNSTEIN: We said the Chancellor of the Exchequer
and the Commissar.
MR. O'CONNELL: Luxford, how much would it weaken
your position to say, "If we hear favorably from London and
Moscow--" ?
H.M.JR: "After we hear affirmatively--"
MR. WHITE: That is all that is necessary. We pulled
it out after a lot of discussion.
H.M.JR: "After we hear affirmatively from London and
Moscow.'
MR. WHITE: Either affirmatively or favorably. We
didn't ask them specifically.
MR. LUXFORD: We asked Winant for the reaction of the
Exchequer.
H.M.JR: Now listen, fellows, I want to hear affirmatively.
I don't want to hear favorably but affirmatively. I make
that distinction.
MR. O'CONNELL: If we hear affirmatively, we would
like to go ahead.
MR. BERNSTEIN: We ought to bear in mind the type of
telegram we have sent, Mr. Secretary, is one that is more
likely to call for a favorable than a categorical reply.
H.M.JR: I am not going to go ahead unless I get an
affirmative, categorical answer. I am not going to do it.
We have just crossed that bridge. Harry has just crossed
that bridge, and you fellows agreed.
MR. LUXFORD: No, no, no, you told us that if Russia
said no--now, that to my mind is not anything like if they
come back and say, "We are favorable, "but you don't say yes
or no without qualifications.
169
- 20 -
MR. WHITE: May I read what we said to him, and
then you can tell what the answer has to be?
H.M.JR: Wait a minute. I am not going to let you
get away with that. I said I wouldn't go forward unless
they said yes or no.
MR. LUXFORD: But those aren't the only alternatives.
H.M.JR: They either want a conference, or they don't.
If they want 8. conference with reservations, no.
MR. WHITE: Well, their reservations that they spoke
of with respect to this point--they will not give up those
reservations now. If they give them up, it will be in the
conference, or they may not give them up. I thought what
you referred to was whether they will participate in the
conference. The question as to whether or not they will agree
to the draft which is formulated is less certain at this
stage. I would be inclined to think yes, but that is by
no means certain.
H.M.JR: You were going to read me what?
MR. WHITE: You say, "I have discussed with Secretary
of State Hull the further steps that should now be taken.
We are agreed that after informal consultation the following
program should be followed: (a) A drafting committee of
experts from 8 to 10 countries should be convened in
Washington about May 10 to prepare an agenda and drafts to
be considered by a conference. (b) The formal invitations
to the conference would be sent about May 1. (c) The con-
ference would hold its first plenary session about May 26."
Then you say, "The President has informed me that he
will appoint me to head the United States delegation which
will include some members of Congress. It seems to me that
if you could come to the United States at the head of the
Soviet delegation it would provide an excellent opportunity
for us to become acquainted and to go over our common problems
with our colleagues from the United Kingdom and China. I
appreciate that it may be difficult to be away from Moscow
throughout 8. conference, but it is my earnest hope that it
will be possible for you to come.
Regraded Unclassified
170
- 21 -
"Meantime we expect to continue our discussions with
the technical experts of the Soviet Government on both the
International Fund and the International Bank."
That is the end of the message.
Then you say to Harriman, "Please transmit the sub-
stance of the above message to Molotov."
H.M.JR: Now, what I say is this: If they say, "Yes,
we will have 8. conference,' I would be satisfied to go ahead.
So I still say I don't see why you can't say, "After we
hear favorably" that is all right.
Now, let me just switch one minute--are you through?
MR. WHITE: I am through with the floor for the moment.
H.M.JR: Can we say truthfully that the Democrats in
both Houses are with us on this thing?
MR. O'CONNELL: As a generality we can say yes.
H.M.JR: My impression is yes.
MR. WHITE: I don't think you have a great deal of
evidence.
MR. O'CONNELL: Oh, but it would be inconceivable
to me.
H.M.JR: Unfortunately the President doesn't get
back until May 4. I had hoped he would get back today.
We have to give him time to think. Now, I have been
wracking my brains, Fred, to try to evaluate this thing
from the standpoint of whether it would be good or bad for
the President. I just don't know.
MR. SMITH: It will be wonderful if it works. That
is a big help, isn't it?
171
- 22 -
MR. WHITE: I'll say this for a contemplated conference,
there is less chance of its failing than any conference that
has ever been held on a major subject, because there is more
groundwork, and there is more agreement. That would be my
unqualified judgment.
MR. BERNSTEIN: After we work out with the Soviet
people that one problem that we have on which we are not
certain--
H.M.JR: I don't want to get into a long discussion,
but hasn't South Africa made a similar reservation?
MR. BERNSTEIN: No, sir. You might expect them to.
MR. LUXFORD: I don't care if they did.
H.M.JR: They did something about newly-mined gold.
MR. BERNSTEIN: They said they would sell it on the
best market which we provide for. They misunderstood. Any
one of those small countries can hold out and it won't affect
the conclusion.
H.M.JR: You have the thing favorably. Do I have to
see it again?
MR. WHITE: There is one further suggestion in line
with what you have just said where you say, "The statement
was well received." Now, you don t say in this the statement
that you have just made. I don't know whether you had in
mind to say it orally.
H.M.JR: What do you mean?
MR. WHITE: That the Democrats of both Houses are
with you. Only say that it was well received, and I think
it can justly be said.
MR. SMITH: Then you have quotations and clippings
from Wagner and four or five Democratic--
172
- 23 -
H.M.JR: Where are they?
(Mr. Smith hands file of clippings to the Secretary.)
MR. WHITE: Mr. Secretary, we have to know what we are
in for, that this plan or any plan is going to be the target
for very severe criticism and a lot of mud -slinging on the
part of the financial writers and some of the important press.
There is no doubt about that, no matter what you say. They
already have begun, and they will accentuate it as they
think the danger of getting something appears more in the.
offing. And you have to be prepared for that.
H.M.JR: You have joined my club. They seid, "Take
8 man like Professor White, who doesn't know the first thing
about foreign exchange" did you see that?
MR. WHITE: I saw that.
MR. BERNSTEIN: Where was that?
MR. WHITE: And that Hull knows even less than I do.
That is pretty low.
H.M.JR: You have joined my club.
MR. WHITE: There is no doubt of it.
H.M.JR: Well, look, that part doesn't bother me a
bit, because if it isn't this, it will be something else.
After all, the arguments that you fellows could have used
with me, which you didn't--I am going on the other side and
say, "Well, the President told you to go ahead; why are
you so over-cautious now?" You could have said it.
MR. WHITE: No, it is your problem.
H.M.JR: But I want to be over-cautious. What I am
trying to do is to give it to them. It would be perfectly
within his right to come back and ask me a lot of questions.
That is what I am prepared for and why I wanted two or three
days to answer. On the other hand, there is a fifty-fifty
chance he will say O.K.
Regraded Unclassified
173
- 24 -
MR. LUXFORD: Supposing Russia came back equivocal,
and Britain said, "Sure, we will be there;" would you put
up to the President calling a conference under those cir-
cumstances?
H.M.JR: Say it again.
MR. LUXFORD: Supposing Russia didn't say yes or no,
but, "We will try to get someone there, and the British
say, "Yes, we will go along." Would you even raise with
the President the holding of & conference?
H.M.JR: I want them more definite.
MR. LUXFORD: Would you raise with the President?
H.M.JR: I wouldn't go; I would go back at the Russians.
MR. O'CONNELL: Sure.
H.M.JR: I sent these cables the other day without
going to the President.
MR. LUXFORD: I mean, I should think you would have to
get on the telephone tomorrow with Moscow and London if you
are going to get a categorical answer.
MR. WHITE: Look, we say the 1st of May. You are asking
for a telegraphic authorization. Supposing the President
wants to ask you some questions? Why shouldn't that be his
decision, whether by telegraph or whether he shall wait
here until Tuesday? Shouldn't you leave the word "telegraphic"
out? He knows the date is the lst.
MR. BERNSTEIN: It isn't Tuesday; it is Thursday he
is coming back.
MR. WHITE: He can read the dates.
H.M.JR: It doesn't raise the question, because all of
his communication is by telegram; he has no telephone. It
is like saying, "Please write me by letter." It is like
telling a boy overseas, "I will appreciate your writing by
letter. He has no other means of communicating.
Regraded Unclassified
174
- 25 -
MRS. KLOTZ: If he wants to wait until he gets back,
he will telegraph you he wants to wait until he gets back.
H.M.JR: Look, if the man was sitting there and had a
telephone and hadn't telegraphed me before--but he sent me
two answers by telegram, so I am a sking him to send it back
to me through what is his usual method of communication.
What do you think?
MRS. KLOTZ: I think I would let it go.
H.M.JR: Yes. You boys send it, and I will arrange--
MR. SMITH: Is he likely to ask you whether it will be
good or bad for him?
H.M.JR: No, he will make up his own mind. He never
has asked me that question.
(Secretary speaking to Mr. McMullen on White House
phone:)
Who is this?
Sometime within the next hour Agent Bouck of Secret
Service will have a message to go by code tonight to the
President. Should he go to you or to the map room?
Do you remember the other night I gave it to you and
it went off all right?
This isn't ultra secret; it is just whatever you have
there
Which would you like me to do?
Well, then, do you know Agent Bouck?
Where are you located?
I will tell Agent Bouck to bring this to the telephone
room and it will be sometime
Regraded Unclassified
175
- 26 -
You haven't many messages at this hour, have you?
This will give you something to keep you awake
Thank you very much
The other one went through very promptly
(The Secretary gives instructions to Mr. Fitzgerald.)
Now, at the top you say from and to.
MRS. KLOTZ: Just the way you have it, "Telegram for
the President from the Secretary of the Treasury.
H.M.JR: That is, right. You did the other one the
other night. You don't have to come back at me.
MR. WHITE: There is no doubt but if the thing goes
well you will share the praise. If it goes sour, you won't
share it; you will get it all. There is no doubt about that
in my mind.
H.M.JR: Harry, I don't think I quite made myself
clear. In all of these years that I have worked with Mr.
Roosevelt, I have always been prepared to let him have
what is good, and I have always been prepared to take what
is bad. I can afford to take it. After all, if it gets
too bad, I can always go back and raise apples. But this
is very important for him, and I am thinking of him. In
all honesty and not Morgenthau, I am thinking of Roosevelt.
He may have to run for President. He may have to sit at
the peace conference. He should have a record of success
for his first conference.
MR. WHITE: I agree.
H.M.JR: So when the armistice is won, he has made 8.
success. If it is a failure, it is a black mark against
him. I am terribly sincere about this thing.
MR. WHITE: Quite right. And if it was sour because
Russia came out and we jumped the gun because they weren't
definite, I think he would have every right to hold you
responsible.
Regraded Unclassified
176
- 27 -
H.M.JR: But again, I am not worried about getting a
bad press myself. I am used to it. I am not worried about
being blamed. I am not worried about Hull running out on
me if it gets hot. I am expecting all of that at a discount,
but I and the rest of us in this room have to do everything
to look after the President's interests, because the
President's interests are the country's interests, what we
are going to get out of the peace conference. The first
one has to be a success.
MR. WHITE: That is right. And I meant to say what I
did to support what you are saying, that the responsibility
for the decision rests here, that we cannot take any assur-
ance or any support by passing the buck, because the President
is relying on you to make the right kind of decision.
H.M.JR: And if it comes back, I am going to drag my
feet if I am not satisfied, and I want you to know why.
Regraded Unclassified
177
TELEGRAM FOR THE PRESIDENT FROM THE
SECRETARY OF THE TREASURY
In accordance with previous arrangements, of which I
informed you in w telegram of April 18, I appeared before
the appropriate Committees of the Senate and the House on
April 21 and discussed with them the Joint Statement of
experts on the establishment of an International Monetary
Fund. The Statement was well received by the Congressional
Committees.
Simultaneous publication had already been arranged in
several of the larger countries and the Joint Statement was
published in Washington, London, Messon, Chungking and in
other capitals. The press in this country and in other
United Nations gave considerable preminence to the Joint
Statement.
with the approval of the State Department, I have sent
a message to the Chanceller of the Exchequer and the People's
Commisser of Finance informing them that after consultation
we propose to take the following steps: (1) issue formal
invitations about May 13 (2) convene an informal drafting
committee of technical experts of about ten countries in
Washington about May 10, (8) hold the first plenary session
of the conference in this country, but outside Washington,
about May 26. These steps, of course, are subject to your
approval. Both countries have been advised that a final
decision on a conference rests with you. After we hear from
Lendon and Messow we should like to go forward with these
ments of the United and Associated Nations. To conform with
steps and have invitations sent in your name to the Govern-
this elose time schedule no are foreed to telescope procedures
and disporse with needless formalities.
authorization to go sheed. Secretary Hull and I can work
If you approve of this procedure, my we have your
out many of the details without troubling your but of course
Regraded Unclassified
178
- 2 -
on all major pelitical matters, including the selection of
delegates, we shall refer bask to you.
Secretary Hull is in agreement with no on this telegram.
HDW:EMB:AFLilr 4/26/44
Regraded Unclassified
4/26/19-9
THE SECRETARY OF THE TREASURY
WASHINGTON
TELEGRAM FOR THE PRESIDENT FROM THE
C
P
SECRETARY OF THE TREASURY
Y
In accordance with previous arrangements, of which I
informed you in my telegram of April 18, I appeared before
the appropriate Committees of the Senate and the House on
April 21 and discussed with them the Joint Statement of
experts on the establishment of an International Monetary
Fund. The Statement was well received by the Congressional
Committees.
Simultaneous publication had already been arranged in
several of the larger countries and the Joint Statement was
published in Washington, London, Moscow, Chungking and in
other capitals. The press in this country and in other
United Nations gave considerable prominence to the Joint
Statement.
With the approval of the State Department, I have sent
a message to the Chancellor of the Exchequer and the People's
Commissar of Finance informing them that after consultation
we propose to take the following steps subject, of course,
to your approval: (1) issue formal invitations May 1; (2)
convene an informal drafting committee of technical experts
of about ten countries in Washington May 10; (3) hold the
first plenary session of the conference in this country,
but outside Washington, May 26. Both countries have been
advised that 8. final decision on a conference rests with you.
After we hear favorably from London and Moscow we should like
to go forward with these steps and have you issue invitations
to the Governments of the United and Associated Nations. To
conform with this tight schedule we are forced to telescope
procedures and dispense with needless formalities.
Secretary Hull and I can work out most of the details
without further troubling you; but of course on some major
matters such as the selection of delegates we shall consult
FORVICTORY
you.
BUY
ENITED
STATES
WAR
BONDS
or
STAMPS
Uni
180
- 2 -
Secretary Hull is in agreement with me on this
telegram.
If you approve of this procedure, we would like to
have your telegraphic authorization to go ahead.
photoctat 4/27/44 181
EMBASSY OF THE
UNION OF SOVIET SOCIALIST REPUBLICS
WASHINGTON, D.C.
April 26, 1944
My dear Mr. Secretary:
I am transmitting herewith People's Commissar's
for Finance of the U.S.S.R., Mr. Zverev's reply
to your two messages to him.
This reply was received by cable from
Moscow.
Sincerely yours,
A.
The Honorable
Henry Morgenthau, Jr.
Secretary of the Treasury
Treasury Department
Washington, D.C.
Regraded Unclassified
182
TRANSLATION
"I have received your first and second personal messages on
the question of publication of the joint statement of experts of
United and Associated Nations regarding organization of an inter-
national monetary fund.
"As you already know, on April 20, the Soviet Government has
instructed the Soviet finance experts, at present in Washington,
to identify themselves with your draft of joint statement, in spite
of objections on the part of the majority of our experts on a
number of points. I can inform you that the full text of the
mentioned joined statement was published in Moscow in the news-
paper "Izvestia" of April 23, 1944.
"I share your view regarding the joint statement of experts
as a further evidence that our countries intend to cooperate
side by side in the matter of solution of international monetary
and financial problems. I hope, that the favorable cooperation
and mutual understanding, which was formed in the course of the
present negotiations between experts of the People's Commissariat
of Finance of the U.S.S.R. and the United States Treasury, will
provide in the future the solution of the questions scheduled
for consideration by our experts regarding organization of an
international monetary fund with, of course, taking into account
the interests of our countries.
"Taking advantage of this opportunity, I thank you, Mr. Sec-
retary, for the attention and warm reception, rendered to the
Soviet experts by you personally, and also by your assistant,
Mr. White, and by the experts of the Treasury."
Regraded Unclassified
183
The Journal of Commerce
APR 26 1944
World Economic
"Central Reconstruction Fund,"
the House Foreign Affairs
the ratio had fallen to 62 per cent
this question, while Mr. Anderson
mittee was told by Mr. Dewey that
by March of this year. If we cob-
said be has requested the chair-
Agreement Asked
the approach to International
tinue at the same rate, with the
man of the Committee Coinage,
monetary stabilization should be
jame amount of currency in cir-
Weights and Measures "towall will a
through individual conferences and
ulation and the same increased
hearing at an early date so that
Eccles Statement Made
measures with separate nations
purchase of Government bonda by
the Congress may secure all of the
'each of which could stand on its
nember banks, the percentage will
details on the international mohe-
as Hearings Open on
own feet."
each the 40 per cent minimum,
tary fund proposal and considered
Mr. Dewey warned of Postwar
dr. Dewey predicted. "In dollars,
legislation before the President In-
Dewey Currency Plan
uncertainties as to British trade
hat means member Federal Re-
vites the United Nations to take
and Russian economic policies and
serve banks may purchase only
part in the world monetary confer-
(Bureau of Journal of Commerce)
criticized the Treasury's proposed
$12,500,000,000 more of Government
ence."
securities.
WASHINGTON, April 25.-Fed-
creation of an $8,000,000,000 central
Dangers Been
The Deway plan to set up a
oral Reserve Board Chairman Mar-
fund as "leaving out the practical
United States revolving fund for
"There are several dangers of a
Inner 8. Eccles today Issued a
consideration of what will be the
réconstruction and currency sta-
world monetary conference is held
statement on currency stabilization
motives and ideologies of the na
bilization purposes was pronounced
a "good bargain" by Republican
prior to Congressional action," Mr.
which falled to give specific In-
tions we are asked to help later
members of the committee "If It
Anderson said. "What will hap-
dorsement to the Jan developed by
on?"
would accomplish" what the Treas-
pen If Congress falls to approve
experts of the United Nations but
Mr. Dewey told a meeting of the
ury's $8,000,000,000 fund would ao-
United States participation in the
which stressed the need for inter-
Foreign Affairs Committee, unat-
complish, but Chairman Sol Bloom
International monetary fund should
tended by Democrats except for the
(Dèm., N. Y.) stated that the pur-
an agreement be reselted be
national economic co-operation.
chairman, that "this country's gold
poses of the two proposals were
reached by the conference?"
stock is so necessary that we dare
"entirely different."
Mr. Andreson contended "Con-
In his first public statement on
efforts to arrive at a basis for
not sepd out of this equntry or
Republicans raised question as
gress alone has the sole power to
agreement, Mr. Eccles withheld
give away any more of
than
is
to the constitutionality of delega-
regulate the value of our money.
commitment as to the merits of
absolutely essential."
tion by Congress to an interna-
and therefore, It logically follows
He stated that in Oct sper, 1942,
tional fund of its powers over the
that Congress should retuin com-
the proposals. He sald, however,
Federal Reserve notes weresecured
value of money. Representative
plete control over the monitary at-
that "It is a matter of no small
by 82 per cent of gold, and that
Karl Mundt (Rep., 8. Dak.), For-
fairs of this country unw Il such
consequance that agreement of
sign Affairs Committee member,
time as the people have frected
techni experts representing 34
and Representative August H. An-
otherwise by constitutional amend-
nations at international collabora-
derson (Rep., Minn.
both
raised
ment."
tion has been, achieved." The In-
terest of Federal Reserve authori-
ties "In tae effete of any arrange-
ments relating to currency stabili-
zation" was pointed out, as well as
the fact that Federal Reserve
technicians have participated in
the currency discussions,
Dewey Hearings Open
Mr. Eccles statement was made
public as legislators, considering an
alternative proposal to the United
Nations experts' plan. were told
this country should not "lose" its
"bargaining position with other
nations by entering into an inter-
national monetary agreement b-
fore clarification by other power
of their postwar. policies an
ideologies.
In opening sessions on the pro-
posal b Representative Charles 8.
Dewey Rep., III.) for a $500,000,000
Regraded Unclassifie
WAR DEPARTMENT
WASHINGTON, D.C.
APR 26 1944
The Honorable,
The Secretary of the Treasury.
Dear Mr. Secretary:
As in the previous War Loans, the War Department
will be happy to cooperate with the Treasury Department in
the Fifth War Loan to the maximum extent compatible with
military necessity. A directive similar to the one issued
for the Fourth War Loan is being prepared and will shortly be
published.
Since the arrangement regarding service command liaison
officers was 80 successful in the Fourth War Loan, the directive
will specify that all requests for Army cooperation from
State or local War Finance Committees will be coordinated by
such officers. Commanding generals of service commands have
been asked to designate liaison officers, and as soon as
their names have been reported I shall transmit them to you.
I want to assure you of my deep personal interest in
the forthcoming drive and trust that Army cooperation and
participation will again contribute materially to its success.
Sincerely yours,
Therey L Etinison
Secretary of War.
Regraded Unclassified
185
TANDARD FORM No. 14A
TREASURY DEPARTMENT
APPROVED BY THE PRESIDENT
MARCH 10, 1926
WASHINGTON
TELEGRAM
CHARGE TREASURY DEPARTMENT, APPROPRIATION FOR
OFFICIAL BUSINESS-GOVERNMENT RATES
Official
(The appropriation from which payable must be stated on above line)
a. & - - -
2-14117
APRIL 26, 1944
Mr. Ernest L. Olrich
Munsingwear Company
Minneapolis, Minnesota
Delighted you are coming with Treasury and look forward to seeing
you here next week
Henry Morgenthau, Jr.
Regraded Unclassified
186
VICTORY
TREASURY department
BUY
UNITED
STATES
WAR
PROCUREMENT DIVISION
WASHINGTON 25
FICE OF THE DIRECTOR
April 26, 1944
MEMORANDUM TO THE SECRETARY:
10,929 bicycles have been declared surplus to us
and we have initiated discussions with the manufacturers
to determine whether they are interested to buy those
for which we do not have special requirements. One
manufacturer has indicated a desire to purchase those
bearing his brand at & price equal to the original
cost to the Government.
A conference was held with the executives of the
Office Machinery Branch of the War Production Board to
discuss tentative policies and procedures with regard
to the disposition of surplus property in the office
machinery category.
A conference was held with officers of the
National Paint, Varnish and Lacquer Association for
the purpose of exploring the best approach to disposal
of surpluses declared to us in their field.
Chirten E. Mack
Director of Procurement
Desreded
Mr. Haas' memo in response to Secy.'s request 187
for information on volume of public works,
particularly sewers, being constructed by
sinte and local govts., and the reasons that
tuis construction is being carried on at
present time
188
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE April 26, 1944
TO
Secretary Morgenthau
FROM
Mr. Haas M
In accordance with your request for information on
(1) the volume of public works, particularly sewers,
being constructed by State and local governments, and
(2) the reasons that this construction is being carried
on at the present time, we called Mr. Arthur Eaton,
Director of the Government Division of the War Production
Board. He provided us with the following information:
(1) The War Production Board approved 6,039 State
and local government public works projects costing $406
millions during the calendar year 1943. A classification
of these projects by activities follows:
Number
Amount
(In millions)
Highways
1,299
$ 191
Hospitals
833
59
Schools
1,150
35
Sewers
485
24
Recreation centers
392
6
Churches
419
4
Health centers
79
2
All other
1,382
84
Total
6,039
405
(2) These construction activities are only a small
percentage of the average annual volume of public works
undertaken by State and local governments. Mr. Eaton
had no figures on prewar construction by such governments
immediately available, but we find that construction by
such governments 1s estimated to have amounted to $3 b11-
lions in 1941 by the Census Bureau.
Regraded Unclassified
189
Secretary Morgenthau - 2
(3) Most of the 1943 applications concerned areas
that had experienced great increases in population or
had a congested population situation as a result of the
establishment of new war plants or the expansion of
plants already in operation. These areas found them-
selves in critical need of highways, hospitals, schools,
sewers, and other public works in order to maintain the
morale, health, and productive capacity of their residents.
(4) The War Production Board has established a very
strict policy with respect to the construction activities
of State and local governments. Mr. Eaton said that rigid
standards as to the new ectivities that will be permitted
are in force and that no public works applications are ap-
proved unless they conform to these standards.
190
AMLEGATION
BERN
FOR HARRISON FROM WAR REFUGEE BOARD
Following for Intercross
QUOTE In full agreement with interested American welfare agencies
War Refugee Board requests Intercross to approach the Gefman and
satellite governments, through appropriate and expedient channels,
to bring about with respect to Jews and other persons, detained,
interned, or otherwise confined because of race, religion, or
political belief (1) treatment equal to that accorded civilian
internees to whom Geneva Convention is currently applied by analogy
or (2) equal treatment of such persons to the extent at least that
reception and distribution of packages under Intercross supervision
be permitted them under guarantees equal to those in effect with
respect to the civilian interness referred to in (1) above. War
Refugee Board feels strongly that (1) above is preferable and
suggests that (2) should be presented only if in the judgment of
Intercross (1) is unobtainable.
Furthermore, War Refugee Board requests Intercross to make
every effort to obtain, wherever possible, for Jews and other vic-
time of Nasi oppression (who though they may hot be physically
interned have been singled out for persecution) facilities and
opportunities to obtain food and other necessities on the basis of
equality with the local population both from local or demestic
sources and through Intercross channels. In addition, War Refugee
Board calls attention to the Board's efforts to bring Jews and other
persecuted persons out of German controlled territory in as large
numbers as possible. The Board urges that Intercross, through
appropriate approaches to the German and other authorities in German
controlled territory and through any other means possible, do what
it can to assist the departure of these persecuted peoples to
neutral countries.
The Board is cognisant of unceasing efforts of Intercross
in the direction of making this general program a reality and
is appreciative of the humanitarian activities of Intercross.
The Board is ready to assist Intercross in every way to effectuate
the realisation of all of the foregoing UNQUOTE.
Following for Harrison.
War Refugee Board considers the proposed approaches to the
German and other authorities through Intercross are of utmost
importance to the success of its program. In view of recent
military developments, including the reported situation in Hungary,
Bulgaria and Rumania, the Board is convinced that special emphasis
should be placed on efforts to persuade the Germans to improve
the condition of Jews and other similar groups within occupied
Regraded Unclassified
191
territories. Accordingly, you are requested to do everything pos-
sible to support the proposals being made to Intercross. If at
any time you believe that the Swiss Government would be willing to
make similar approaches to the Germans or otherwise assist in the
program outlined herein, you are authorised informally to make a
request for such action to the Swiss on behalf of this Government.
*
*
*
Attached hereto for appropriate clearance and prompt
transmission is a redraft of the War Refugee Board's cable to the
International Committee of Red Cross which was referred to in
my memoranda of March 23, April 11 and 12, 1944. The redraft
attached hereto contains one new sentence which appears at the
end of the first paragraph. In all other respects the cable is
exactly as heretofore submitted to you.
I have discussed the cable with FEA and have obtained
their oral clearance. FEA will, however, inform the London
blockade authorities that this cable is being sent by this Govern-
ment to the International Red Cross.
April 26, 1944
11:05 a.m.
Regraded Unclassified
192
CABLE TO AMBASSADOR WILSON FOR ACKERMANN, ALGIERS, FROM
WAR REFUGEE BOARD
Please refer your No. 1337 of April 22.
We are exploring all possibilities in connection with the
problem of evacuation from Yugoslavia and will keep you advised of
any developments here. Admiral Land is requesting Kalloch to explore
with you the shipping problems involved.
We are convinced of importance of matters discussed by you with
Hirschmann and will do all possible to carry out your suggestions.
The efforts of you and Saxon in this regard are greatly appreciated,
This is WRB Cable to Algiers No. 6.
April 26, 1944
2:40 P.M.
JBF:bbk - 4/26/44
Regraded Unclassified
193
CABLE TO VINANT, LONDON, FOR RIKFLER
Information available to the War Refuges Board indicates
that Svitsorland would be in a position to receive larger numbers
of children and presumably of adult refugees from easmy oppression
if facilities for additional imports of clething and feedstuffs were
granted. In view of this Government's policy to use every available
means consistent with the successful presecution of the war to bring
about the resoue of the victims e easay oppression is imminent
danger of death, you should undertake to secrure the prempt concurrence
of apprepriate British authorities " that definitive assurances can
be given to Svitserland and other neutral countries cestigueus to
enemy-held territory that additional feed and dething will be allowed
through the bleckades subject to appropriate safeguards, in amounts
suffi cient to meet increased needs by reason of their reception of
refugees. It is appreciated that certain general assurances have
already been given in certain instances. Nevever, it is our desire
to give definitive assurances to all the contiguous countries. Please
keep the Department infomred of developments.
*****************
April 26, 1944
4:05 p.m.
JWPehle
LSLesser:lab 4/25/46
JEDuBeis
Regraded Unclassified
194
RCC-687
PLAIN
London
Dated April 26, 1944
Rec'd 11:43 a. 27th.
Secretary of State
Washington
3449, Twenty-sixth
FOR EMERSON FROM KULLMANN
Following is text of American Embassy letter
dated March 9th to IGC (Reference Department's 3131,
19th):
"I am glad to inform you that it is the view of
the Department of State that the choice of a final
destination for refugees accommodated at the refugee
center in North Africa should fall within the sphere
of the Intergovernmental Committee, and that it is
suggested that the committee examine this question,
It is believed that this is also the view of the
Foreign office, which I an informing of the present
communication to you. It is the desire of the Department
of State that the referring of this matter to the
Intergovernmental Committee be in association with
the Foreign Office".
WINANT
KR
Regraded Unclassified
195
CABLE TO AMBASSADOR WINANT, LONDON, FROM THE WAR REFUGEE BOARD
Please refer your No. 3233 of April 20 with respect to use of
Swedish ship for refugee evacuation purposes. Your prompt action in
this matter 1s greatly appreciated.
As soon as & favorable reply 18 received from the British, please
take up the matter with the Swedes on the basis indicated in your cable.
The choice of the vessel to be diverted may be left to the Swedes although
it should be suggested that the largest vessel readily available should
be used, The Swedes should be asked to request German safe conduct. If
you deem it desirable we will ask Ambassador Harriman to obtain Russian
safe conduct or you may request him directly to do so, You are authorized
to advise the Swedes that necessary financial arrangements for the use
of the vessel will be made by the War Refugee Board,
Kindly advise us of such further action as should be taken from
Washington in order to make available a Swedish vessel at the earliest
possible moment.
April 26, 1944
10:40 A.M.
JBF:bbk - 4/26/44
Regraded Unclassified
196
PARAPHRASE OF TEREGRAM RECEIVED
FROM:
American Embassy, Tegucigalpa
TO:
SecretaRy of State, Washington
DATED:
April 26, 1944
NUMBERS 127
SECRET
This merning the matters contained in the Department's
6-79 of April 20, received last evening, were discussed by
no with the Minister for Foreign Affaire. Complete success
on all points. I was given by the Minister two signed notes
relating respectivity to exchange negotiations and to the
material at tep of page three of the airgram which is under
reference. Later today we will cable translations.
Inquiries from the Spanish Minister concerning valid=
ity of the passporte have not been received by the Minis-
try for Foreign Affairs and such inquiries as may be re-
ceived later will be ignored b) him.
FAUST
Regraded Unclassified
197
PARAPHRASE OF TELEGRAM RECEIVED
FROM
: American Embassy, Tegucigalpa
TO
:
Secretary of State, Washington
DATED
;
April 26, 1944
NUMBER : 128
SECRET
Given below is the substance of note No. 1647 signed by
Silverio Lainez which the Minister of Foreign Affairs handed
to me this morning (see my cable No. 127).
The idea that an exchange of German nationals for
persons in Europe who are nationals of Honduras or who
have documents as such be arranged with Germany through
appropriate means by the United States is approved by the
Government of Honduras. Legitimate citizens of Honduras,
will have priority over all others in these negotiations.
You should note that the Honduran Government assumes no
obligation to admit persons who are not legitimate Mondurans
into its territory, even temporarily. Please accept, etc.
There follows another cable.
FAUST
Regraded Unclassified
198
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Tegucigalpa
TO:
Secretary of State, Washington
DATED:
April 26, 1944
NUMBER:
129
SECRET
You are requested to refer to my cables of today's date
Nos. 127 and 128.
Given below is the substance of note No. 1646 signed by
Silverio Lainez which the Foreign Minister handed me this
morning:
The illustrious Government of the United States is re-
quested by the Honduran Government to transmit to the Swies
Government the following message:
The Swiss Government, in representation of Honduran
interests before the German Government, is requested by
the Government of Honduras to advise the Government of
Germany that those persons possessing Honduran passports,
or who accredit Honduran citizenship on the basis of
consular documents, be safeguarded and that all the
immunities of enemy nations in accordance with what is estab-
lished in the Geneva Convention concerning treatment of
prisoners of war or which has application by analogy, be
accorded to those persons.
I take this opportunity, etc.
It is assumed that the Government of the United States
will pay all cable costs since the Minister wrote this
note at my suggestion, made in accordance with the Depart-
ment's airgram of April 20, 1944 No. A-77.
FAUST
Regraded Unclassified
198-A
CORRETTION OF TELEGRAM RECEIVED
FROM:
American Hubassy, Tegucignlpa
TO:
Secretary of State, Washington
DATED:
April 26, 1944
NUMBER: 139
The following should be inserted in the fourth
paragraph, line seven, after the word "immunities":
"privileges and rights accorded to civilian internees."
Regraded Unclassified
Released on April 26,1944, Broadcast by the Voice of America to Europe, particularly
to Hungary
It
199
TEXT OF U.S. APPEAL TO HUNGARIANS TO AID HUNGARIAN JEWS
Following is the text of an appeal addressed to the Hungarian people
Wednesday by & spokesman of the United States government:
People of Hungary: You are living under Mazi occupation. Although
your rulers have long collaborated with the Nazie in the past, you are
learning now at first hand what a Nazi regime means, what it has meant to
millions of people in occupied Europe.
You are witnessing in the course of this occupation, one of the most
terrible of Nazi devices in action. This is the familiar Nazi scapagoat
device by which the Nazis hope to divide and conquer. In your country.
the scapagoat has been made the Hungarian Jew. You are being told today
that the Hungarian Jew is responsible for allied air attacks on your cities,
which manufacture weapons for Germany. You are told this even though your
puppet rulers are working frantically to contribute arms, transportation.
and the blood of your men to the Nazi cause, converting your factories
and your railroads into a target for Allied bombers.
Knowing this you can judge how insanely brutal is the Nazi puppet
announcement that Hungary's Jews should be made to suffer for these attacks.
We know that many of you have already reacted against this Nazi bru-
tality. We know because we read it in your own papers that Hungarians are
walking publicly in the streets with Jews who wear the Nasi inspired Star
of David; that your own primate, Cardinal Seredi has appealed to the Nazi
authorities to spare the Jewish people; that Hungarians are aiding Jews
to retain their property: that Hungarians continue to trade in Jewish
stores. We know all of these things. We ask you, however, to go further
We ask you to remember the words of President Roosevelt:
"I ask every man everywhere under Nazi domination to show the world
by his action that in his heart he does not share Hitler's insane criminal
desires. Let him hide these pursued victims, help them to get over their
borders and do what he can to save them fm the Nazi hangman. I ask him
also to keep watch and to record the evidence that will one day be used
to convict the guilty."
Those are the words of President Roosevelt, spoken on March 24th
...
they are addressed to the whole of Europe
To all people who wish to
demonstrate that following an Allied victory they are fitted to take their
place in a peaceful family of nations.
Regraded Unclassified
200
CABLE TO LISBON
To Minister Norweb from Var Refugee Beard.
Be your 1058. Eleanor Widen will accept appointment as secretarial
assistant to Dexter at $2,000 per annus plus $7.00 per diem. We
propose appointment as 8005 as possible and would appreciate your
approval.
THIS IS WEB LISBON CABLE NO. 6
April 26, 1944
11:15 I MoRe
VStewartjpdk 4/25/46
Regraded Unclassified
201
RCC-550
This telegram must be
Lisbon
paraphrased before being
communicated to anyone
Dated
April 26, 1944
other than a Governmental
agency. (scoo)
Rec'd 9:58 p.m.
Secretary of State
Washington
1261, April 26, 5 p.m.
WRB 8.
FOR WAR REFUGEE BOARD.
Reference WRB 7. Suggest delay Quaker project
bringing French children temporarily to Portugal
until decision made regarding negotiations concerning
entrance and care possibly large numbers refugge Children
Latter still pending and French project may possibly
prevent it materializing.
NORWEB
WSB
Regraded Unclassified
202
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Born
DATED:
April 26, 1944
NUMBER? 1442
SECRET
Reference is made herewith to the fourth sentence in
the message for Dr. Wise quoted in your cable of April 18,
1944 No. 2444.
If pessible, we wouldlike to know who preposed to the
Germans the principle of exchanging Jews who hold Palestine
certificates and the date and deaner of the German Governo
ment's acceptance. In assessing the probability of success
of such efforts as my be taken along these lines, the
Department might be aided by sush information.
HULL
Regraded Unclassified
203
RECT-394
PLAIN
Bern
Dated April 26, 1944
Rec'd 4t54 pin.
Secretary of State,
Washington,
US URGENT.
2669, twenty-sixth,
Department's 1428, twenty-fifth, from War Refugee
Board,
McClelland took oath and completed forms 47 and
1041 today. Legation would appreciate telegraphic
instructions on following points:
One. May he draw Foreign Service pay adjustment
on salary and per diem?
Two. As other Legation officers now entitled to
eight dollars per diem, may he be paid at that rate or
is seven dollar rate to be maintained?
Three. Is he authorized approve vouchers for WHB
expenditures as authorised certifying officer?
Four, Is a monthly telegraphic statement of advances
for WRB expenditures from contingent desired?
HARRISON
WTD
Regraded Unclassified
204
CABLE TO AMBASSADOR STRINHARDT, ANKARA, TURKEY FROM WAR REFUGE BOARD
Please refer to your No. 712 of April 9 with respect to use of SS
BARDALANDA for evacuation of refugees. M you were advided in our
No. 333 of April 15, we requested Ambassador Winant in London again
to take up this matter with the British and the Swedes. Ambassador
Vinant has now replied as fellows:
QUOTE. In accerdance with the request cortained in the Department's
No. 3005, April 15, we immediately sought consent of the British
Government. The head of the Relief Section in KEV was simultaneously
approached because of the urgency of the mtter. Even though the reply
of the British Government is not yet available, we find the opinion of
the cited Section Head (W.A.Oamps who in Greek relief matters is the
most influential British offi cial) is agreeable to diverting of a
Swedish ship ongaged in Greek relief, the coice to be Ift to the
Swedes though the BARDALAND seems likely and Conditional on Russian md
German naval and - air safe conducts; but to any approach made to Germany
before the departure from the Baltic (scheduled for April 25 or 26) of
the last of the three additional and two replacing Swedish ships
approved by the Germans for the Greek relief fleet, Camps is emphatic
that whatever anticipatory arrangements be made he would object
strenuously.
Shall I guide By discussion with the Swedish Minister in the same
sense, if this proves to be the line taken by the British when their
reply is received? Valuable time may be saved by your advance
instructions. UNQUOTE
We are today cabling Ambassador Winant instructing his to proceed
with his negotiations for a Swedish vessel on the basis indicated by
him as soon as & favorable reply is received from the British.
You will be advised of any further developments.
This is WEB Cable to Ankara No. 30
April 26, 1944
10:40 some
JBF:bbk 4/26/44
Regraded Unclassified
205
CABLE TO AMBASSADOR STEINHARDT, ANKARA, TURKEY FROM WAR REFUGEE BOARD
Please refer to your No. 725 of April 22 with respect to safe conduct
for SS TARI. Your action is approved. However, for your information, the
Joint Distribution Committee here has advised us that Barlas of Jewish
agency can probably arrange for coastal schooners to convey refugees
from Iskenderum to Haifa if voyage of TARI were to terminate at
Iskenderun. Accordingly it is suggested that you take this matter up
at once with Barlas in order to see if he can arrange transportation of
refugees from Iskenderun to Haifa. If this can be done it may be advisable
to arrange with Turks and Intercross to change route of SS TARI in order
that German safe conduct may be obtained promptly.
This is WRB Cable to Ankara No. 31.
April 26, 1944
2:40 P.M.
JBF:bbk - 4/26/44
Regraded Unclassified
206
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Ankara
TO:
Secretary of State, Washington
DATED: April 26, 1944
NUMBER:758
SECRET
Following is substance of Ankara no. 471 from the
Ambassador for the WRB.
This morning I have had a talk with the Apostolic
Delegate concerning the German safe conduct for the SS TARI.
I was assured by Monsignor Roncalli that a request that
they make every effort to obtain the safe conduct would
be telegraphed to the Vatican today.
STEINHARDT
Regraded Unclassified
207
ORIGINAL THE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
AMOONSULATE GENERAL, ISTANBUL
DATED:
April 26, 1944
NUMBER: 267
SECRET
War Befugee Board most appreciate your reports on
conditions and refuges problems in Greece. Reference your
despatch 2680, March 18, Board would welcome further
development by you your suggestions for evacuation Greek
Jews and non-Greek refugees with cooperation BAM and Allied
escape services. Board believes it can arrange for funds
and such additional assistance as may be necessary to permit
escape from Greece victime of eaemy oppression who are in
imminent danger of death, regardless of their religion,
nationality or statiless status. Please telegraph estimate
amount required to initiate your preposals.
Your ceeperation in this matter will be most appreciated.
Repeated to Ankara and NacVeigh at Cairo as Department's
no. 373 and no. 953, respectivily.
HULL
Regraded Unclassified
208
AGK-655
PLAIN
Moscow
Dated April 26, 1944
Rec'd 10:25 M.M., 27th
Secretary of State,
Washington.
1453, Twenty-sixth
Moscow papers for April 24 and 25 publish a Tass
despatch from Londen reporting that about 30 Jewish
soldiers who were accused of desertion from the Polish
Army have been sentenced by a court nortial composed
of Polish officers to imprisenment of from one to
three years. The accused complained of bad treatment
and asserted that for that reason they case to Lendon
with the intention of leaving the Polish Army and
joining the British Army. They refused to return to
the Polish Army.
Repeated to London for Schoenfeld.
HAMILTON
REP
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
209
FROM:
The American Ambassador, Buenos Aires
TO:
The Secretary of State, Washington
DATE:
April 26, 1944
NO.:
1069
IA
SECRET
Perlinger's position is shown to be very strong at the least by the
steps which this Government has recently taken although there is no indi-
cation that the existing political impasse has definitely been broken.
The return recently to strict movie censorship to bar films which according
to the Municipal Director of Theaters and Public Spectacles injure the
Aris countries' sensibilities, the expropriation last night of the interests
of the Electric Bond and Share in Tucuman offering compensation well below
the real value of the installations of the light company, the closing of
VANGUARDIA and LA PRENSA, and the expropriation of the gas company in
Buenos Aires which is owned by the British, are among the developments
which the Embassy has in mind.
What reaction Peron can generate remaine to be seen. For & week he
has been out of circulation allegedly with grippe and therefore has not been
able, supposedly, to exercise his influence during his absence to block any
of the above measures. On the indications Peron has given during the past
few weeks of his wish to bring Argentina closer to the United States is
based the Embassy's feeling that he 1a not in accord with such measures.
Since things are seldom what they seem under the present regime this feeling,
of course, may be mistaken but the conclusion is the same in any case: A
reorientation of the anti-American policy of this Government and the
possibility of constructive changes in the Cabinet are diminishing. That
we are engaged in an endurance test with a regime which appears to be
confident it can hold out longer than the united front of the nations re-
fusing to maintain normal relations with is the situation which must be
faced by us.
This message repeated to Lima, Montevideo, Rio, and Santiago.
ARMOUR
DCR:MPL
5/1/44
ef:copy
5-3-44
Regraded Unclassified
him Shannai
210
MRE-327
PLAIN
London
Dated April 26, 1944
Rec'd 3:14 p.m.
DEPARTMENT OF STATE
Secretary of State
DIVISION OF
Washington
APR 27 1944
COMMUNICATIONS
3421, Twenty-sixth
AND RECORDS
FOR THE SECRETARIES OF STATE AND TREASURY FROM CASADAY
Embassy's 3252, April 20, 7 p.m. and 3253, April 20,
7 p.m.
SECTION ONE:
As perviously indicated the Chanceller of the
Exchaquer announced in the House on Friday that & joint
statement of principles on international postwar currency
would be published as a White Paper the following day.
The Chancellor made clear that the statement is the re-
sult of study at the expert level and that the governments
concerned are in no way committed. HE stated that a debate
would bE arranged at the first/convenient: opportunity.
The Chancellor also asked the indulgence of the HOUSE for
the unusual procedure of issuing a White Paper on a non-
sitting day and stated that this course was made inevitable
by "the Congrassional time-table in the United States".
Discussion
Peeraded
211
-2- #3421, Twenty-sixth, From London
Discussion was limited (which may bE for the reason
stated later in the press that the announcement took the
HOUSE by surprise and few members WERE present) but the
questions put by members showed concern with two main
points: (A) Whether the interests of the dominions had been
fully taken into account; and (B) the degree to which the
British Government is morally if not legally committed
to the statement of principles. On both points the
Chancellor asked members to defer discussion until then
White Paper and its explanatory foreword became available.
The following question and answer, however, are of interest;
"Sir Irving Albery: When the moment CCMES when these
proposals can bE discussed will the House bE in possession
of any information as to how they are considered by British
Ministers?
Sir John Anderson: I think so, yes."
SECTION TWO:
In the publsihed White Paper there is a lengthy explan-
atbry foreword by the United Kingdom Experts setting forth
"some of the more important respects in which the joint
statement by experts on the astablishment of an international
monatary fund differs from or resembles, the proposals
for an international claaring union published as CMD. 6437".
Some
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212
-3- #3421, Twenty-sixth, From London
Some of the principal points contained in this explanatory
note are:
1. While under the clearing union member countries
might have been said to bank with the union, under the
international monatary fund the fund may bE said to bank
with the member countries.
2. The foregoing fact makes unnecessary the creation
of & new international monetary unit, Either bancor or
unitas. It is Explicitly stated, however, that under the
present scheme "precistly the same functions" can bE per-
formed as could have been under the claaring union,
3. Just, as under the clarring union, only central
banks of member countries could have Engaged in transactions
with the untons so, under the international monatary fund,
the fund can Engage in transactions only with the central
banks or monatary authoritis of member countries and is not
free to Enter the market or deal with other banks or persons.
4. The aggregate facilities guaranteed by the initial
subscriptions to, the fund are smoller than were proposed
for the clearing union but they are substontial and can bE
increased if necessary by general agreement. In this
connection it is pointed cut that the facilities of the fund
are not intended to provide for relief or reconstruction
nor to
Regraded Unclassified
213
-4- #3421, Twenty-sixth, From London
nor to cover indebtedness arising out of the war.
5. The clearing union proposal was criticised on the
ground that it made insufficient provision for asticity
of Exchange rates and for alteration of rates initially
established. The prefactory note Explains in detail the
provisions of the international monatery fund designed
to allow desirable Elasticity and to preserve the sovertign
rights of member countries in altering the Exchange values
of their respective currencies under specified circumstances.
6. Both the claaring union proposal and the monatary
fund envisaged an Eventual free interconvartibility of all
national currencies on the basis of rates established for
the time being but under the monetary fund it is made cle er
that a member's obligation in this respect applies only
to transactions of a current account nature.
7. The clearing union proposals to prevent any member
from drawing on its facilities too rapidly or too freely when
the member's own resources are adequate aré worked
out more fully in the monetary fund proposal "but without
difference of intention".
8. The claaring union proposals to put some responsi-
bility on craditor as well as debtor countries for main-
taining stability have been replaced in the monatary fund
proposal
Regraded Unclassified
214
-5- #3421, Twenty-sixth, from London.
proposal "by a different, but perhaps more far-reaching
provision with the same object in view". This is followed
bE a detailed Explanation of Section VI of the present
proposal.
9. Dection X of the joint statement goes further
than the claaring union proposals in attempting to provide
for the transitional period following the close of
hostilities. These provisions are Explained in considerable
detail.
10. An important matter left over for further
discussion at a later stage is that of the management
of the new institution.
SECTION THREE:
All national newspapers on April 22 devoted prominent
news and Editorial space to the Chancellor's announcement
and publication of joint statement of principles.
Discussion continued in SOME papers April 24 and a few
Sunday papers, April 23, had brief descriptive accounts.
FINANCIAL TIMES of April 22 and FINANCIAL NEWS of
April 24 carried full text of White Paper. In general
press reaction was distinctly favorable although there
was SOME disposition to sound a note of caution and to view
practical
Regraded Unclassified
215
-6- #3421, Twenty-sixth, from London.
practical SUCCESS of plan as dependent on United States
trade and tariff policy and in particular on United States
SUCCESS in maintaining domestic prosperity and full
employment. Some of those taking this latter view warned
that Britain should not abandon Close relations with the
Empire nor flout any opportunity to maintain cordial
relations with other countries on a bilateral or regional
basis.
A few papers, notably the tabloid DAILY MIRROR and
the Beaverbrook DAILY EXPRESS, depicted the joint statement
as tantamount to a return to gold. The former (April 22)
headlined prominently: "One hundred experts want world
back to gold". The news article also contains the statement,
carried likewise by SOME other popular papers, that, "The
report was regarded in washington as an American victory
over British proposals to relegate gold to a minor role
in post-war stabilization".
The DAILY EXPRESS of the same date opens its news
account with the statement that, "Currency Experts of the
United Nations propose to put us and other countries on the
long, weary road back to gold". These two papers have very
large circulations, but their influence in a technical
matter
Regraded Unclassified
216
-7- #3421, Twenty-sixth, from London.
matter of this nature may not bE as great as that of the
more sober publications with smaller circulations and
should not, therefore, bE overestimated.
The TIMES first leader of April 22 referring to the
year-long discussions by the Experts, stated that, "All
concerned are to bE congratulated upon their achievement;
but the méasure of that achievement must not bE exaggerated
ib.no government is in any way committed to the agreement
yet.
The discussion which the White Paper Expressly invites
is the more necessary since no arrangement of the kind
proposed could become really Effective without the support
of public opinion in all the countries concerned, and in
particular of the British Parliament and of the United
States Congress".
This editorial after stating that in general the
structure proposed by the Americans has been followed,
suggests with EVIDENT approval that "the change of name
from 'stabilization fund' to 'monetary fund' is significant
of the greater Elasticity provided".
In this same connection the editorial asserts that
"much as stability of Exchange rates is desired, too high
a price would bE paid for it if it involved tying the
supply of
Pogradod
217
-8- #3421, Twenty-sixth, from London.
supply of currency to a rigid international standard, with
the danger of being forced to contract industrial and
business activities when the internal situation demands
a policy of Expansion. The joint statement will bE closely
scrutinized from this point of view. On a first Examination
it certainly appears that ample safeguards have been
provided".
The TIMES aditorial concludes with the following state-
ment: "Much will depend upon the ultimate direction of
the policy of the United States as a great craditor and
exporting nation. It is not a question merely, or EVEN
primarily, of American tariffs. what matters most to the
rest of the world is that the United States should Enjoy
a stable prosperity without any disturbing fall in the
price level and without the alternate booms and slumps
which spread havoc far outside the American boundaries and
by themselves would suffice to wreck any international
currency schemes".
The TIMES "City Notes" for April 22, after admitting
that comment on the joint statement must bE tentative
at this early stage, states that from first impressions
"While the plan has borrowed much of the formof the white
scheme
Regraded Unclassified
218
-9- #3421, Twenty-sixth, from London.
scheme it has retained a great deal of the Essential
substance of the Keynes proposals
referring to the
possible necessity of rationing currencies in short supply
and the consequent restriction of international trade".
The columnist notes that the new compromist plan "gives
the members of the fund thereby affected wide liberty of
action - liberty, in fact
to institute or reinstate
Exchange control. If it wishes to avoid the development
of such a situation, the onus will bE on the creditor
country to avoid an unmanageable disquilibrium in its
relations with the "rest of the world". The remainder of
this article is devoted to an explanation of the ways in
which the present joint statement, as distinct from carlier
versions of the British and American proposals, provides
for greater Elasticity of Exchange rates.
The FINANCIAL TIMES Editorial of April 22 states that
the joint statement "illustrates the advantages of informed
discussion of opposing theses" but points out that "its
simplified lines indicate, however, that closer contact
with differing ideas and with practical difficulties has
brought conviction of the need to avoid too grandiose a
conception and to pay due heed to national susceptibilities".
The remainder
Regraded Unclassified
219
-10- #3421, Twenty-sixth, from London.
The remainder of this aditorial is devoted to a resume of
the principal features of the joint statement. Stress
is laid on the elasticity provided and the assertion is
made that the plan "goes as far in the direction of the
slasticity it must possess as is compatible with its
primary function of restoring stability".
The FINANCIAL NEWS of April 22 also emphasizes the
provisions for Elasticity of Exchange rates and adds that
"it should bE noted too that although the par value of
currencies is to bE Expressed in gold - a provision doubtless
designed to make the plan more acceptable to American
opinion - this is purtly an accounting device. It does not
in fact link the volume of credit within member countries
to the available supply of gold as would bE the CASE under
a gold standard". This Editorial states: "The basic
requirement of any Exchange regime, from our point of view,
is that it should never lead to a situation in which
domestic monetary policy would have to bE governed by
concern for the balance of payments. There are two situation
in particular in which it is imperative that our hands
should not bE tied by any currency commitments. The first
would arise in the EVENT of a major slump in the
United States.
Regraded Unclassified
220
-11- #3421, Twenty-sixth, from London.
United States. The second would bE the result of a rise
in the British price level (at Existing rates of exchange)
above that in the rest of the world. The international
monetary fund endeavours to provide safeguards to COPE
with either of these contingencies".
The MANCHESTER GUARDIAN aditorial of April 22 points
out that gold is to play a far less oppressive part than
was previously suggested" and states with Emphatic approval:
"Above all, a persistently over-Exporting country will bE
compelled by the scheme to make its own contribution
towards restoring the balance instead of expecting the
debtor countries to bear the whole weight of adaptation.
The provisions by which this distribution of burdens is
achieved are naturally complex and must bE well tested
before one can bE sure that they will bE Effective".
On the issue of the possible disadvantages of an
international monetary scheme to Great Britain the
GUARDIAN makes the following remarks: "HEre is an inter-
allied agreement on a highly controversial issue arrived
at after a year of keen discussion which at times looked
frankly hopeless. Parliament remains entirely free to
reject it, but it might well bE impressed by the fact that
the alternative
Regraded Unclassified
221
-12- #3421, Twenty-sixth, from London.
the alternative to this agreement 10 probably no agreement
at all. That raises the question whether WE really want
to have what the original british plan described as 'a
genuine organ of truly international government' or whether
WE should rather SEEK isolation in a narrower regional
arrangement and cut adrift from the unpredictable tides of
a world-wide trading system.
That is the decision which Parliament and government
must take. It is an easy decision on the plane of rhetoric
but there are grave issues to bE considered on both sides.
In joining a wide system of Exchanges WE must accept its
rules, like all others, and to that Extent WE shall lose
freedom of action. No one can predict what the trading
position of this country in the world will bE after the
war, and WE are undoubtedly taking risks if WE become part
of a relatively free and automatic international system.
But that risk must bE taken if WE are to remain a trading
nation. It must bE taken if there is to bE scope and hope
for a steadily Expanding world Economy and a growi ng human
control over the devastating tides of boom and slump.
There may bE safety in isolation but it will prove as
short-lived in the commercial as in the political field.
The danger
Regraded Unclassified
222
-13- #3421, Twenty-sixth, from London.
The danger lies in large fluctuations in the supply of
dollars which might bE caused in future as in the past
by internal American booms and depressions. A strong CASE
can bE made out for protecting our domestic Employment
against the sudden impact of American slumps. Careful
consideration suggests, however, that WE cannot find such
safety by cutting the dollar link and trusting to narrow
regionalism. What WE can do is to interpose a safety fuse.
The new plan provides safeguards which at first glance
look much stronger than any ever suggested before. If
they stand up to public scrutiny the plan should bE
accepted".
The SUNDAY OBSERVER April 23 stresses the importance
of the provisions for slasticity: "After our Experience
under the gold standard, the ordinary man must realise
by now that External montary policy is a matter which
vitally concerns him, for all its seeming technicality.
Some international monetary order (such as that outlined
in the white Paper issued yesterday by the British Government)
is obviously desirable
but too rigid an Exchange regime
places domestic policy at the mercy of the balance of
payments. To bE acceptable to this country the first
requirement
Regraded Unclassified
223
-14- #3421; Twenty-sixth, from London.
requirement of any international currency plan is that
it should bE consistent with full Employment.
There is, therefore, one simple test of any currency
plan. 'What happens if America gets into a slump? Does
it mean that WE shall bE dragged into a slump as well?'
It can bE said at once that the international monetary
fund now proposed by the United Nations' experts passes
this test with flying colours".
Paul Einzig's column in the FINANCIAL NEWS April 24
is devoted largely to a criticism of the elasticity
provisions in the joint statement. HE fears that devaluation
when needed may not bE as Easy to bring about to the
required Extent as the wording of the statement would make
it appear. HE finds it "regrattable that the Experts did
not claborate a formula which would have more closely
fixed the conditions under which.consent to devaluations
could not bE withheld".
The Financial Editor of the MANCHESTER GUARDIAN
April 24 makes the following comments on the subject of
the elasticity provisions of the joint statement:
"Discussion in this country will start no doubt with a
welcome for the flexibility of the new proposals
compared
Regraded Unclassified
224
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compared with either of the old ones. WE shall have
freedom to follow an Expansive monetary and social
policy at home EVEN if that should raise our price-level
or increase our import needs to the point of dislocating
our External balance of payments. If the deficit looked
like being temporary WE should simply draw on our quota
of the fund; if it looked like lasting a few years WE
might SEEK loans abroad; but if it appeared to bE 'funda-
mental' WE should bE free to depreciate the pound. The
fund management will not bE allowed to criticise our
domestic policy or to ask us to change it. That is a
freedom on which WE insist because WE have in the past
been hurt by deflation imposed for the sake of maintaining
the External value of the pound. WE are allergic to
deflation and there 18 a danger that the British discussion
might EXPECT too much from this cure. If the pressure
on our balance of payments should arise from a slump
abroad or if both should arise from a common cause, a
depreciation of the pound by 10 or 20 per cent which the
plan would permit almost without obstacle might do little
or nothing to increase our exports, whereas the full
maintenance of domestic Expansion would KEEP up our
imports.
Regraded Unclassified
225
-16- #3421, Twenty-sixth, from London.
imports. WE should then quickly run through our quota
and would presumably have to take domestic steps after
all. In short, freedom to depreciate the currency can
only bE a buffer against the immediate impact of foreign
pressure; it cannot bE a substitute for Economic policy.
All the new freedoms granted under the plan are in
fact negative. WE are free to maintain Exchange control,
free to do away with gold EXCEPT as an accounting device,
free to vary our Exchange rate, and free to discriminate
against the goods of any country which is declared an
under-importer. Finally WE are free to withdraw from the
whole scheme at any time. These are the points on which
Parliament and the press had Expressed anxisty, Expecially
after the publication of the second version of the white
plan with its unreasonable rigidities. Gratitude is due
to the British Experts for obtaining understanding for
these points. On the other hand, if the flexibility
should bE pressed any further the scheme might become so
clastic as to bE meaningless. what WE allwant to do is
to lay down rules of the game so that world trade can
flourish in peace. If WE reserve too much freedom to
disragard the rules whenever they become inconvenient
others will
Regraded Unclassified
226
-17- #3421, Twenty-sixth, from London.
others will Equally disrtgard them just when WE most
need an international machinery to keep trade moving".
The FINANCIAL PRESS on April 24 reported a rise in
the price of gold mining shares owing to the publication
of the joint statement.
Most April 24 newspapers and some of the Sunday
papers April 23 reported American comment. on the monatary
plan. In this connection several papers reported briefly
the statement by Secretary Hull praising the accomplishment
of the Experts in producing the present plan and urging
speedy action to implement it and other programs before
the End of the war.
Copies of the British white Paper and of the more
important prass clippings will bE forwarded by airmail.
WINANT
NPL
Regraded Unclassified
227
NOT TO BZ RE-TRANSMITTED
COPY NO
11
SECRET
OPTEL No. 134
Information received up to 10 A.M. 26th April 1944.
1. NAVAL
In three encounters botween our Coastal Forces and onemy ships
in the Channel 23rd/24th, two German Destroyors damaged. Our casualties
one Motor Torpedo Boat sunk as reported yesterday and ton killed, 4 wounded
17 missing. On 25th/26th one of H.M. Cruisers and four Destroyers attacked
three Gorman probable Destroyers off NORTHERN DRITTANY. Proliminary report
indicates one or more ships sunk. Esstern APPROACH to SPITHEAD closed owing to
suspected mine-laying by aircraft arly this norning.
Mediterranean One of H.M. Minesweepers damaged by mine but resched
port in tow. On 24th, 30 to 40 enemy airccaft
attacked NAPLES but no naval damage or casualties reported.
2. MILITARY
Italy U.S. Troops in bridgehead have reported several successful
small attacks on German positions.
Burma In the ARAKAN our troops have mado local advances South
West and last of BUTHIDAUNG. On IMPHAL KOHIMA Road no have
cleared a road block 12 miles North of IMPHAL. In KOHIMA area, Japanese
activity resumed with heavy hand-to-hand fighting in town 23rd.
3. AIR OPERATIONS
Western Front 24th/25th KARLSRUHE. 2110 tons dropped about helf
H.E. and half incondiary. Moderate cloud nade bombing
difficult; reports somewhat conflicting but considered fair proportion of bomb
fell on tom starting good fires. Ground opposition dight, two Gorman
aircraft claimed destroyed.
Munich 681 tons dropped nearly all incendiary. Markors accurato
and bonbing well concentrated on them. Successful attack,
subsequent reconnaissance reported very large fires. Ground defenses heavy
with numerous searchlights but practically no fighters.
25th 2736 Bomber and Fighter sortios flown. Fortressus and
Liberators dropped 450 tons on three airfields in Eastern
France under generally cloudy conditions, 60 tons in MANNHEIM area and 80
on military contructions NORTHERN FRANCE. Enemy casualties reported:
9 destroyed in the air and 32:7:42 on the ground.
Ours: 7 bombers, 7 fighters.
Medium and fighter bombers attacked military constructions -230 tons
and Coastal Defences - 350 tons in WORTH&W FRANCE and 40 tons on cirfields
in BELGIUM. Three aircraft missing.
25th/26th 61 aircraft despatched on various minor tanks. About
135 German aircraft operated in two phases over and off
South Coast between between PORTSMOUTH and NEWHAVEN. Enomy casualties
uncontirmed 4:1:1 Bombs fell chiefly in PORTSMOUTH and CHICHESTER areas.
At PORTSHOUTH power station dramaged too fatal casmalties, at CHICHESTER
residential damage five fatal casunitios.
Regraded Unclassified
228
Italy 23rd - Total 478 Bombers and fightor-bombers attacked
communications and supply dumps in Central Sector. 25th.
Allied aircraft dropped 259 tons on aircraft factory TURIN and effectively
bombed goods yards at FERRARA. Enomy casualties reported 14:4:1, ours
17 aircraft missing.
Rumania 24th. Escorted liberators dropped 390 tons goods yards
BUCHAREST with excellent results; Fortresses and
Liberators dropped 703 tons on similar objectives PLOESTI results also
good, much damage to railway facilities and rolling stock, two large oil fire
and one other fire in goods yards, four large oil fires in two refineries
Enemy casualties reported 31:12:6. Ours bombers 8, Fighters 1.
Yugoslavia 24th. Fortresses dropped 50 tons on an aircraft
factory BELGRADE.
ME INCYSTANT REM1
OF
Regraded Unclassified
cc: Mr. FitzGerald
229
April 27, 1944
9:54 a.m.
Operator:
Go ahead.
HMJr:
Yes.
Mrs. Herbert
Lehman:
Hello.
HMJr:
Hello, Edith.
L:
Henry, I'm taking you at your word
....
HMJr:
Right.
L:
.... because we have not been able, 80 far, to
get anything. They said they are still trying,
but I am 80 afraid it means finding ourselves
without anything.
HMJr:
Right.
L:
Now, Herb would like to have a drawing room if
possible, on the one o'clock -- on the one-thirty
train, tomorrow.
HMJr:
One-thirty?
L:
Yeah, but failing that, the two-thirty.
HMJr:
Ah -- either one-thirty or two-thirty.
L:
Yes, preferably the one-thirty, 80 he doesn't
have to wait around so long, you see?
HMJr:
Right. And -- they can reach you at "820"?
L:
They 'can reach us at -- well, I think maybe it
would be better to reach us at the hospital,
because Mr. Frankfurt -- no, I think if they
reach us at "820", that's safer.
HMJr:
All right, Edith. I'm
....
L:
And -- and, Henry
....
HMJr:
Yes.
L:
had we better do something about the seats
....
besides the drawing room?
Regraded Unclassified
230
- 2 -
HMJr:
How many seats do you want?
L:
Ah -- if -- we'll have to have three seats
besides the drawing room.
HMJr:
Okay.
L:
All right?
HMJr:
We'll take it -- I'll take -- we'll do the
whole thing.
L:
Oh, well, thanks ever 80 much, and you'll let
us know?
HMJr:
We'll let you know. Now, are you doing it
besides?
L:
Well, I tell you -- you see, he's put an order
in. Now, whatever you think.
HMJr:
That's all right, but you'll hear directly from
Mr. FitzGerald in my office.
L:
From Mr. FitzGerald. If, in the meantime, they
call us from the railroad company, I'll let you
know right away.
HMJr:
Yeah, if you don't mind letting Mr. FitzGerald
know.
L:
Mr. FitzGerald -- at the same number -- 2626?
HMJr:
That's right.
L:
All right. Thanks ever 80 much, Henry.
HMJr:
No.
L:
Bye - bye.
Begraded
231
April 27, 1944
10:05 a.m.
HMJr:
Hello.
Operator:
Go ahead.
HMJr:
Hello.
Robert
Doughton:
All right.
HMJr:
Henry talking.
D:
All right, Henry. How are you?
HMJr:
Good - I'm fine. Your - Bob, I thought you did a
wonderful job on that simplification.
D:
Well, I thank you. It has been most favorably
received -- the newspapers are all commending
it very highly -- complimenting -- even the
editorials, you've seen.
HMJr:
Yes.
D:
Well, I'll tell you why we did it and how we
did it.
HMJr:
Yeah.
D:
It's the first time that we've had complete,
one hundred per cent cooperation among the
Treasury, and your staff at the Bureau, and
the George staff
HMJr:
Wonderful !
D:
and they worked together without the
slightest lack of harmonious cooperation, and
in perfect accord, and it -- our committee went
along with them well. We had no semblance of
any partisanship in that, and we got it out
with work that proved -- unanimously approved by
the membership of the Committee and all the
staff. And I thought it was wonderful.
HMJr:
Well
D:
And I - and I certainly thank you and appreciate --
I've been aiming to call you or write you, but
I've just been so busy, I haven't got to it.
Regraded Unclassified
232
- 2 -
HMJr:
Well, our boys down here -- both Blough and
Surrey -- have only got the most complimentary
things to say about you and the staff up there.
D:
Well, we - I'm glad they feel that way about
it, and I'm glad that when little wrinkles
that have existed in the past are smoothed out,
and we're working together in such harmonious
cooperation, for the accomplishment of result
that we all -- objectives -- that we all have
in mind.
HMJr:
Well, I think it's a good thing for the country
and a good thing for the Democratic Party.
D:
Oh, there's not any doubt about that -- for both.
HMJr:
Yeah.
D:
Now, was there anything else?
HMJr:
That's all.
D:
Well, I -- hold you up just a minute.
HMJr:
I've got all the time in the world.
D:
Well, I thank you for -- I thank you for calling,
and what you say -- appreciate it very much, and
I was going to call you or write you. Now, here --
Mr. Bell has written me a letter about increasing
the debt limit, you know?
HMJr:
Yeah.
D:
Well, we've got -- some of our boys didn't want
to take that up 'til we got through with this
tax bill. I wanted to have a hearing on it this
week one day, but Mr. Cooper and some of them are
a little tired and wanted to get rid of this.
Now, I've got my plans set this way, Henry:
HMJr:
Yes.
D:
that Monday a week, the eighth
HMJr:
Yeah.
D:
I'll ask Mr. Bell, and anybody from the
Treasury that wants to come up on the debt limit --
we'll have one day's hearing on it.
Regraded Unclassified
233
- 3 -
HMJr:
Fine.
D:
And I've seen Senator George and he says that
he can put through over there -- if we sent it --
in one day.
HMJr:
Wonderful !
D:
Now, Monday a week is the eighth -- the eighth
1s Monday a week, and I think we can finish it
up -- ah -- the week beginning the Monday of
the eighth.
HMJr:
Well, that's -- that's
....
D:
In both houses, and I think that will give you
about a month before you begin your bond sale
....
HMJr:
That's right.
D:
....
on the twelfth of June.
HMJr:
That's right.
D:
So we're working to get it out of the way and
in good shape for you by that time.
HMJr:
Well, Mr. Bell will be up there with bells on.
D:
Well, you can tell him -- I'm going to call him --
I wrote him yesterday, and I'm going to call him
this morning and see if that's satisfactory.
HMJr:
Well, he's sitting here now. Just a moment,
I'll ask him.
D:
Yeah.
HMJr:
Just a minute. (Pause) Mr. Bell says that he
would be glad to come up on the eighth.
D:
And I think -- tell him I think we can put it
through both houses that -- that week, because
I looked -- I'll speak to the leadership --
Rayburn, the Speaker, and the Majority Leader,
80 as to give us that week as soon as we can
get the hand to get it through the House by
about the ninth or tenth
HMJr:
Yeah.
Regraded Unclassified
234
- 4 -
D:
.... and then go right over to the Senate,
and they say they can handle it in about a
week, I think we will finish up, tell him,
that week. Ask him if that will be all right.
HMJr:
I'm sure that he'll be satisfied. I'm sure.
D:
That'll be fine. And thank you and him both
very much.
HMJr:
Righto.
D:
Good-bye.
HMJr:
God bless you.
D:
You the same. Thank you. Good-bye.
235
April 27, 1944
10:11 a.m.
HMJr:
Hello.
Sen. Walter
George:
Hello.
HMJr:
Walter George?
G:
Yes, sir - yes, sir.
HMJr:
How are you?
G:
Fine, Henry. How are you?
HMJr:
Fine. Walter, I've just been talking to
Robert Doughton, and he's been getting along
fine on this simplification.
G:
Yes. I had a talk with him yesterday.
HMJr:
And, he said that the Congressional staff and
ours never got along better than they did on
this.
G:
He told me 80.
HMJr:
And, as I understand, he thinks he's going to
pass it on the fifth, I believe.
G:
Yes.
HMJr:
Now, I just wondered what we down here could
do to be helpful to you.
G:
Well, as soon as it is passed, why, I will want
you all to come down and talk it over with us
....
HMJr:
Fine.
G:
and let us have an understanding of it --
possibly the very next day after it's passed.
HMJr:
Well, will you give me a little ring?
G:
Oh, yes, I'll give you a ring.
HMJr:
This is being handled here for me by Blough and
Surrey.
Regraded Unclassified
236
- 2 -
G:
Well, I'll be glad to give you a ring.
HMJr:
If you'll do that, I'll appreciate it.
G:
All right.
HMJr:
And, then he told you about the debt-limit
bill?
G:
He did, yes, and I saw a little flare-up in
the House. Some of them thought that we didn't
need to raise that much -- raise the limit that
high at the present moment.
HMJr:
Well, Danny Bell is watching that for me,
so if there's anything we can help on that,
if you'd let either Bell or me know.
G:
I'll let you know.
HMJr:
Thank you.
G:
I don't think we'll have any trouble in the
Senate.
HMJr:
Thank you. We missed you the other day.
G:
Yes. I was sorry I couldn't be here, but
....
HMJr:
And ....
G:
....
I couldn't very well get back.
HMJr:
But if you had the opportunity, I'd like
Mr. White to call on you and explain the
thing to you.
G:
I'll be glad to talk with him, Henry.
HMJr:
Do you want to set any time now?
G:
Well, I can't this morning.
HMJr:
Well, any time that you're ready, if you'd let
Mr. White know, he'd be glad to call on you
and go over it with you at your convenience.
G:
Fine -- fine.
HMJr:
Thank you.
237
- 3 -
G:
All right.
HMJr:
Good-bye.
G:
Good-bye.
is
Regraded Unclassified
238
14
April 27, 1944
MEMORANDUM FOR THE SECRETARY
From:
Mr. Blough
Subject: Chairman Doughton's attitude toward Treasury
staff.
(For your information; no action required)
While I believe that Chairman Doughton 1s correct
in saying that the Treasury staffs and Joint Committee
staff have worked in closer harmony on the Tax
Simplification Bill than on previous legislation, I
think this is due in large part to the fact that no
policy issue was at stake between the Treasury and
Congress. If and when an important policy issue again
arises, Chairman Doughton's complaints about lack of
cooperation will almost certainly be renewed. He does
not seem to understand that in the nature of the case
the staffs cannot reach an agreement when their
superiors are not in agreement on basic policy.
RB
Regraded Unclassified
239
April 27, 1944
10:18 a.m.
Operator:
He'll be right on.
HMJr:
Hello.
Senate
Operator:
Hello.
HMJr:
Hello.
Senate
Operator:
Just a minute, sir.
Henry A.
Wallace:
Hello.
HMJr:
Hello, Henry.
W:
Yes -- I was talking to Tom Connally the other
night ....
HMJr:
Yes.
W:
and he wasapouting fire and brimstone
against Argentina.
HMJr:
He was?
W:
And I told him that the reason why things
hadn't moved faster was because of his good
friend from Texas, Marvin Jones.
HMJr:
Yes. (Pause) Hello?
W:
Yeah.
HMJr:
And what did he have to say to that?
W:
Well -- and I explained the situation a little
bit, and he thought the American people ought
to be willing to tighten their belts and do
the job.
HMJr:
Yeah. You didn't suggest that he might,
as Chairman of the Committee on Foreign
Affairs, put a little heat on the Secretary
of State?
W:
me that it would be a good thing if you'd have
No, he didn't suggest that, but it does seem to
a little talk with Tom and tell him the story.
Regraded Unclassified
240
- 2 -
HMJr:
I see. Is that -- is that what you had in
mind?
W:
That's what I had in mind.
HMJr:
I see. Well - - ah - - I'll talk it over with our
boys, and - we've been ....
W:
I couldn't talk absolutely plainly to him,
because Mrs. Hull was sitting between me and
him. (Laughs)
HMJr:
(Laughs) A little embarrassing, huh?
W:
Oh, no -'no. Mrs. Hull was talking just as
strongly against Argentina as he was. (Laughs)
HMJr:
Oh, really?
W:
(Laughs) Yeah.
HMJr:
Really. Well, I'll check up. Thanks very
much for the tip.
W:
All right, Henry.
HMJr:
Hope to see you soon, Henry.
W:
Fine. Where are you?
HMJr:
I'm here in my office.
W:
I -- 1s - I noticed in the papers the statement
on the -- this International bank, and is that
coming all right?
HMJr:
That's coming along nicely.
W:
Well, I just want to say that I think that 1s
one of the most important things of all.
HMJr:
Good. Good.
W:
And if we get it the way White had in mind, I
think it's going to be of enormous significance.
HMJr:
Well, ah -- we're all right now. We're -- we've
sent a message last night to the President saying
that we'd like to call this conference, and Hull
18 very enthusiastic for this.
Regraded Unclassified
241
- 3 -
W:
I thought his statement was splendid.
HMJr:
Yeah -- yeah.
W:
And that statement will be very helpful.
HMJr:
Yeah ....
W:
All ....
HMJr:
....
well, I'm glad that you feel kindly
disposed to it.
W:
Yeah. All right, Henry.
HMJr:
Thank you.
W:
Good-bye.
242
April 27, 1944
10:25 a.m.
HMJr:
....
Secretary speaking.
Clifton
Mack:
Yes, sir.
HMJr:
Mr. Dan Bell said that you've made a statement
that you've billed the Russian Government for
a lot of things that - that they'd never paid.
M:
Ah - no, not the Russian Government; we do buy
a lot of things.
HMJr:
No, he said that you've billed the Russian
Government for a half of dozen things and
they've never paid us for them.
M:
Oh, no !
HMJr:
Well, now, Bell's right here. He can talk to
you, himself. (Aside: You talk to him) He
says you told Al Hall that you buy things for
the Russians and you bill them, and they never
pay us.
M:
Ah - no. That certainly is misunderstood,
because -- ah -- what we said was this: that
we do two kinds of buying. We buy under the
Lend-Lease Act, and we also buy for certain
of the countries -- for certain countries on
a cash-reimbursable basis. And the illustration
that we gave, I recall specifically, was the
Belgian-Congo.
HMJr:
Well, listen, I'm not interested in anything --
have you ever bought anything for the Russians
that the Russians should pay us for and they
haven't paid us?
M:
There isn't a single thing that we have bought
for the Russians, that I know of, that was -
that was other than under the Lend-Lease Act.
And
HMJr:
Well ....
M:
and that, of course, was
....
....
HMJr:
Well, please run this thing down, because I
don't want statements made in the Treasury,
Regraded Unclassified
243
- 2 -
HMJr: (cont'd) or twisted or misunderstood, that the Soviet
Union doesn't meet its bills.
M:
Oh, Lord, of course not!
HMJr:
Well, now, please get after A1 Hall and have
him talk to Mr. Bell and let's get this thing
straightened out.
M:
Well, surely.
HMJr:
Because this is too important to have rumors
like this floating around.
M:
Why, of course. Of course. I'm - I'm sure
that it's misunderstood.
HMJr:
Well, let's see that it's straightened out.
M:
Why, sure enough.
HMJr:
If they have -- if there's any case where they
haven't met their bill, I want to know it.
M:
There certainly 1sn't, so far as I know. There
wouldn' be any occasion for it, because we
don't do any of that kind of buying for them.
HMJr:
Okay. Well, let's get it straight.
M:
Very good.
HMJr:
Thank you.
244
April 27, 1944
12:15 p.m.
FREEZING OF ARGENTINA
Present: Mr. Luxford
Mrs. Klotz
H.M.JR: Now, listen, let me talk at you a minute,
see? If you know what I have in my mind, and if you
agree with me, I think we can approach this thing
differently.
What I thought was this, from a remark that you
dropped; instead of my writing & formal letter to Mr.
Hull, I was thinking of calling him up on the phone and
saying, "Look, Cordeil, this thing about the Argentine,
as far as the Treasury is concerned, has been kicking
around here for too long. I want to come over and see
you. I have a document. You may not want me to do it
this way, but at least I want to be there and let you
know how we feel, because we feel that we have waited
too long."
MR. LUXFORD: That is right.
H.M.JR: "Now you know, Cordeil, the record as well
as I do, but I have gotten to the point where I cannot
sit here any longer and not make & formal recommendation
on economic grounds - that the Treasury Department feels
the U.S. Government should freeze." I have got to do
it. "You have got to tell me why, on political grounds.
But I, on economic grounds, have got to teil you that we
think you are going to have to freeze."
Now, that was the approach. I have thought 8. lot
about this since I have talked to you, see? I don't
want to get you rushing around - if he says, "Well,
Mr. Morgenthau, if you had told me this, I could have
saved time."
Regraded Unclassified
245
- 2 -
And I also don't want to wait any longer on account
of Harry, as you and I agreed. I think that is far
enough along 80 that we are all right.
Now, where do you and I differ as to method of
approach?
MR. LUXFORD: We don't differ at all. This letter
takes, I believe, that same line. (Hands the Secretary
attached letter to Mr. Hull) It is being retyped
again.
H.M.JR: That is all right. Let me just get the
gist.
We don't want to go back to the first conversation
with Acheson in January?
MR. LUXFORD: I include that later on by saying
that Hull, at that time, was in agreement to freeze.
H.M.JR: I don't understand - "The continued pro-
Axis actions and policies of the present Argentine
Government indicate, in my opinion, the futility of
expecting that Argentina will itself plug the gap she
has made in our economic defenses." I don't understand
that.
MR. LUXFORD: In other words, the State Department
has continually said, "You have got to get Argentina to
cooperate with us. They have got to take action. They
should break with the Axis and impose their own controls."
H.M.JR: I still don't see this, ".. will itself
plug the gap she has made." I don't like that. Can you
rephrase it?
MR. LUXFORD: Yes, I will rephrase it.
H.M.JR: "I suggest that we should now recognize
Spain, Portugal"--
Regraded Unclassified
246
- 3 -
MR. LUXFORD: That has been reworded to make it a
little clearer. The thought is that we should recognize
that at best Argentina is in the same category as Spain,
Portugal, Sweden, and Switzerland, and justifies the
same action.
H.M.JR: I see. Well, I would suggest that the
position of Argentina - I don't know how you put it, but
put it this way: "Vis-a-vis us is much worse than the posi-
tion of Spain, Portugal, and Sweden."
MR. LUXFORD: We will add that, too.
H.M.JR: "...whom we have already, & long time ago,
frozen.
MR. LUXFORD: All right.
H.M.JR: Again this, "A break in relations which the
Argentine Government announced"- a break in relations
with whom?
MR. LUXFORD: The Axis.
H.M.JR: She never went through with it.
MR. LUXFORD: No, they haven't interned the German
Ambassador, and so forth, but they went through the
technical form of breaking relations with the Axis. I
will confirm that, but I am certain of it.
H.M.JR: That whole discussion as to what that man
said and what he didn't say, and then he subsequently
explained that his statement to the Colonel had been mis-
quoted. Do you remember, I sent for 8 copy?
MR. LUXFORD: Yes, now what Ramirez said was that
he had been accused of breaking relations as a result
of American pressure. He wanted tomakeit clear that it
was not on that ground, but because of the German spies
in Argentina.
Regraded Unclassified
247
- 4 -
H.M.JR: You look that up.
MR. LUXFORD: That is right. I will confirm it.
H.M.JR: I think you are arguing too much. I think
all of this stuff is too much argument. Make it much
shorter.
MR. LUXFORD: I think on what we will recite 8.8 to
what they are doing - I think just say, "You know as
well as we do what they are doing in this field."
H.M.JR: "You know better what is going on."
"Since I started this discussion on such-and-such
a date with Mr. Stettinius" - I would go back to that
date, January 4 or 5, I think.
MRS. KLOTZ: Don't want him to quote any of these
things?
H.M.JR: Not up to now. I think it is too much.
There are too many things which we might slip up on,
and we are on the political side. It gives them too much
chance to argue.
My thought is simply to say, "Now look, Cordell,
you know what is going on. Now, God damn it, let's
freeze and quit talking about it."
MR. LUXFORD: I would go back to Stettinius' state-
ment.
H.M.JR: The point is, I want to say firmly that the
Secretary of the Treasury recommends that the Government
of the United States freeze. "Now you, Cordell, tell
me why we shouldn't," instead of my telling him why we
should. That is the approach I would like to take. Just
say, "I say you should freeze." Then say, "All right,
you teil me why we shouldn't. I have been telling you
right along I want to freeze. Now you tell me why we
shouldn't. Let's stop this shadow boxing."
Regraded Unclassified
218
- 5 -
MR. LUXFORD: All right. Do you know what his ans-
wer will be? He will throw those food reports on the
table again.
H.M.JR: O.K.
MR. LUXFORD: But there is an answer to that, and
that is we were prepared to freeze in January when the
situation was worse than it is now, that we will fit
our freezing in with their needs.
H.M.JR: And according to this morning's paper, our
own wheat crop was either twelve or seventeen percent
better than estimated before. Get George to give you
those. It is either twelve or seventeen percent better
than they figured.
You might inquire about the Canadian wheat crop,
too. You see, these rains have just completely changed
the situation.
In other words, I want to take 8. firm position,
"Let's freeze"; and then put him on the defensive - "Why
not?" And I think that the fact that Connally now--
MR. LUXFORD: All right. I think you can skip page
two, then.
H.M.JR: All right.
MR. LUXFORD: And the top paragraph on page three.
H.M.JR: "hat do you think?
MRS. KLOTZ: I think you are absolutely right.
MR. LUXFORD: That was my original inclination.
H.M.JR: As of today?
MR. LUXFORD: No, before. and some of the boys
thought we ought to keep rubbing their nose in it.
249
- 6 -
H.M.JR: I would skip the first paragraph on page
three and say, "I therefore think it is imperative that
we freeze Argentine assets:" and 80 forth.
MR. LUXFORD: I will rephrase that to get your point
in there. "I want to freeze, and you tell me why not."
H.M.JR: No, no. This paragraph is what I want to
say. No, don't tip my hand. This paragraph (indicating)
is the whole guts. And I don't know whether we have to
bring Crowley in or not.
MR. LUXFORD: I would leave him out unless you
particularly want him in. He is not going to help with
State.
H.M.JR: No. what I thought I was going to do is
call Leo up and say that I am going to take this position
with Mr. Hull and "Can I count on your hundred percent
backing? I want to know where you are."
MR. LUXFORD: He has told us before.
H.M.JR: I know, but I want to bring him up to date.
MR. LUXFORD: I might explain why you don't want
to get in to Stettinius. You should start with where we
agreed with him not to freeze and showwhy we have changed
our mind at this point, or why they haven't lived up to
their side of it and we have to change.
H.M.JR: I am going to try to move on this this week.
I am going to ask to see Hull either Friday or Saturday
morning.
MR. LUXFORD: I might tell you that Currie called
White this morning about Sweden and Currie is going to
try to get Treasury in, and to arrange for me and someone
else from Treasury to get into that meeting on the
Swedish issue.
H.M.JR: When is that?
Regraded Unclassified
250
- 7 -
MR. LUXFORD: Tomorrow. I will keep you advised.
H.M.JR: That is all right.
MR. LUXFORD: Do you want me to wait while you call
Crowley?
(The Secretary places a call to Mr. Crowley)
MR. LUXFORD: Did you hear the report of Pearson
that Duggan was going to resign from State? I threw
that out to Collado to get his reaction. He said there
had been a lot of talk about that. He wasn't sure, but
he indicated to me he would probably resign, too. He
said, "The press has a lot of stories that I am resign-
ing, too." He let that slip. A little later he told me
that they are moving him completely out of the State
Department Building and shoving him up on G Street. The
policy boys are moving in and he is on his way out, as
far as being in a position of strength in State.
He and Acheson both seem to be pretty bitter against
Pasvolsky. He told me that Pasvolksy objected to this
other technique that we were trying to do, and he says
what Pasvolsky says is what Hull says. The way he talked
to Acheson that night suggested that they were both
worried about him.
Towson told me the other day that State is kicking
around on General Strong.
H.M.JR: Well, I had a formal communication with
General Marshail that they wanted it.
(The Secretary holds a telephone conversation with
Mr. Crowley, as follows:)
Regraded Unclassified
251
April 27, 1944
12:30 p.m.
HMJr:
Hello.
Operator:
Mr. Crowley.
HMJr:
Hello.
Leo
Crowley:
Hello, how are you?
HMJr:
I'm all right. How are you?
Crowley:
Fine.
HMJr:
Leo, I thought in the next day or two
that I might ask to see Hull and tell him
that the Treasury is going to rec.
is recommending that they freeze the assets
of the Argentine, and just make a flat state-
ment, see?
Crowley:
Yeah.
HMJr:
And then let him say why we shouldn't do it.
Crowley:
I think that would be all right. One thing
that came up, you know, confidentially, on
Spain, uh, he's in quite a row with them, and
he took quite a positive stand, and England
came back and said, well, they'd go it alone
then.
HMJr:
Who'd go it alone?
Crowley:
England would. On this wolfram, you know,
and on us sending oil in.
HMJr:
Yeah.
Crowley:
Hull said he was going to shut it off.
HMJr:
Yes.
Crowley:
Then England said, well, if that was true, why
they needed materials from Spain 80 badly that
they would send oil in themselves.
HMJr:
Yeah.
Regraded Unclassified
252
- 2 -
Crowley:
Well, of course, that put us in the position
that we were sending them stuff, through
oil lend-lease, and if they were going to
send oil into Spain, it put us in a very
embarrassing position.
HMJr:
What happened?
Crowley:
Well, then I saw Hull this morning.
HMJr:
Yeah.
Crowley:
We had a meeting yesterday on lend-lease
extension, and I asked him not to let it get
out into the open until next Tuesday or Wednesday,
but Hull is standing pat on the thing.
HMJr:
I - - you see - I'm not familiar - he's standing
pat?
Crowley:
Yes, and insisting that there be no oil shipments
to Spain and that if England wants to make it,
they are going to have to assume the responsi-
bility for that themselves.
HMJr:
Well, then, he's being good on this.
Crowley:
That's right. Very good. And now I'm sure
that he would be all right on the Argentine.
He's in a good frame of mind right now, on all
these neutrals.
HMJr:
Well, I think that's wonderful. Now, I wish
you'd be frank, when I go to see him, would you
like to have me -- go with me, or not, or would
you rather
....
Crowley:
Be perfectly willing to go with you.
HMJr:
You would?
Crowley:
Sure.
HMJr:
Because you've got quite a stake in this thing.
Crowley:
Be perfectly willing; be glad to. You make the
appointment, and I'll be glad to go with you.
HMJr:
Well, then I'll ask if he'll see us. What I'm
going to do is - I'm going to call up Acheson
and sort of warn him first.
Regraded Unclassified
253
-3-
Crowley:
Yeah.
HMJr:
Because Acheson has been very decent with us
recently.
Crowley:
That's fine, and I'll be very happy to go with
you.
HMJr:
Well, I'm--you say you have an appointment
tomorrow?
Crowley:
Well, I have it just on the Lend-Lease -1n the
Senate, that's all.
HMr:
With Hull?
Crowley:
No. In these Foreign-Relations--in the Senate.
HMJr:
Well, what time is that?
Crowley:
Well, that'll be along about ten o'clock in the
morning. I wouldn't be there more than an hour.
HMJr:
Well, I'd better make it the first thing Saturday
morning then.
Crowley:
That's O.K.
HMJr:
Will you be here?
Crowley:
Yeah.
HMJr:
Well then, I'll ask him whether he won't see us
the first thing, and I thought, if you agree,
we'd just take conservative action, and then have
him say why they're not ready to do it.
Crowley:
I'm sure he'll go along with us on the thing.
HMJr:
You think 80.
Crowley:
Because he's in a very, very good frame of mind,
and on Sweden, he's cooperated 100% with us.
HMJr:
Has he?
Crowley:
There's no difference of opinion between our
staff and his on Spain or on Sweden.
HMJr:
I thought from the little I've been hearing
around that -- oh, some of the Navy people
weren't at all satisfied with what he was
doing on Sweden.
Regraded Unclassified
254
- 4 -
Crowley:
Well, he's - he's changed - -- since he made
that speech, he's been getting tougher and
tougher all the time. You -- you won't know
him now.
HMJr:
Really?
Crowley:
Oh, he just turned a complete somersault.
As a matter of fact, you have to kind of
hold him back a little bit now.
HMJr:
Wonderful.
Crowley:
But that's the frame of mind he's in.
HMJr:
Well, then I'm - then I surely want to see
him. And I'll - I'll let you know.
Crowley:
Fine.
HMJr:
Thank you.
Crowley:
Thank you.
Regraded Unclassified
255
- 8 -
MR. LUXFORD: Currie called White this morning
and wanted us in this meeting so we could ontinue to
fight this thing on Sweden.
H.M.JR: Maybe he doesn't know what Crowley is
doing.
MR. LUXFORD: I think that we ought - perhaps 1
ought to go over and talk to Currie and bring him up
to date on Argentina . - with the lines we are taking on
the thing - 80 Crowley will at least be familiar. He
will know the arguments that are going to be thrown on
the table against it.
H.M.JR: Yes, but I don't see how I could ask not
to take Crowley with me.
MR. LUXFORD: I think it would be a good idea.
H.M.JR: One thing that isn't quite clear in my
mind is how far you boys want to go.
MR. LUXFORD: My own attitude would be to tell them
we will put freezing into effect and then agree with them
on & program of administration. That is what we agreed
to do in January. We are not going to die by cutting off
all shipments now. We will wait until the applications
begin to pour in. We don't want a general license, we will
deal on & special license basis. we will wait until we
get an application and then dog State to death.
(The Secretary holds a telephone conversation with
Mr. Acheson, as follows:)
Regraded Unclassified
<
256
April 27, 1944
12:37 p.m.
HMJr:
Hello.
Operator:
Mr. Acheson.
HMJr:
Hello.
Dean
Acheson:
Hello, Henry.
HMJr:
Good morning.
A:
How do you feel?
HMJr:
Very good. Thank you.
A:
Did you have a - a rest up at the farm?
HMJr:
Yes, I did. I - I needed it badly.
A:
Well, I'm glad you got it.
HMJr:
Dean, I was thinking of asking Mr. Hull to
let me come over there in the next day or
two with Crowley, and we want to recommend
that this -- we, the Treasury, freeze the
Argentine assets. But I didn't want to call
him up or ask for it without first talking
to you.
A:
Yes.
HMJr:
Now, I don't know what's going on over there,
but I've just gotten to a point where I don't
feel that I'm living up to my responsibility
if I don't make a firm recommendation.
A:
Well, I haven't had a look at it for some time.
HMJr:
Yeah.
A:
We -- I sent you those papers ....
HMJr:
I know.
A:
....
you saw what the Board said about this.
HMJr:
Yes. Well, I - I didn't .....
Regraded Unclassified
257
- 2 -
A:
The Chiefs-of-Staff have got them now
....
HMJr:
I know.
A:
....
and we're expecting a reply from them any
day.
HMJr:
Yeah. Well, as -- -- it's so -- -- as I say, I can
go on for a long time, but
....
A:
Yes.
HMJr:
....
I just don't feel I'm living up to my
responsibility, and I've arrived at the point
where I want to recommend that we freeze.-
ourselves, and if -- never mind what the English
do. Let's hope they go along, but if they don't,
well, we'd freeze anyway.
A:
Now, if - - if we do freeze, what - - what kind of
an administration would you have in mind?
HMJr:
Well, we'd work it out, but we'd - we'd take up
each case on its merits.
A:
Well, I mean, what we'd have to have in mind,
1s whether we were going to permit commercial
transactions or whether we were going to attempt
to reduce them below what they are now. I
suppose that on that you wouldn't have any
change of policy.
HMJr:
Well, the - the way we talked about it in
January ....
A:
Yeah.
HMJr:
and we'd want to consult with you people,
and have your advice as each case comes up.
A:
You see, you've got -- you run into things like
this business that we've been holding off now
with Marvin Jones
....
HMJr:
Well, ah
....
A:
who wants to buy a tremendous amount of
corn, .... because we have run out of corn.
HMJr:
Well, Marvin
....
Regraded Unclassified
258
- 3 -
A:
So ....
HMJr:
in public opinion, he can't -- he just --
I'd say 1s just a plain every-day farmer -
citizen. He can't do it. He can't get away
with it. You know the other day, the questions -
the way they questioned us: was the Argentine -
had they been consulted on this monetary thing,
you know?
A:
Yes.
HMJr:
And then I noticed Miss Perkins up there said
that they -- Argentine -- I don't think that
the American public wants us to do business
with them. That's the way I feel.
A:
No. The only thing on this is, that the --
according to Marvin, we're going to be out of
corn, and
....
HMJr:
Yeah, well, of course
....
A:
in a short time, and the industrial,
and the feeders are going to raise hell.
HMJr:
Well, if Marvin Jones will do what the Vice
President is - has very positively recommended
him to do, he can get along all right.
A:
Yeah.
HMJr:
The Vice President has made a very definite
recommendation to Marvin.
A:
Yeah.
HMJr:
I don't know whether you're familiar with it.
A:
No, I'm not.
HMJr:
Well, the point 18 -- that they've already
begun. I mean, I noticed today that they ve
dropped the price on hogs over 240 pounds.
A:
Yeah.
HMJr:
And the Vice President says that just now
that there's too much stuff in the country,
and instead of bringing in more stuff, reduce
the amount of cattle and - and hogs.
Regraded Unclassified
259
- 4 -
A:
Yes.
HMJr:
Until a new crop comes in, and he - I haven't
studied it, but Wallace has, and in my
presence, he made very definite recommendations
to Jones.
A:
Uh - huh.
HMJr:
So ....
A:
Well, all right. Let me
....
HMJr:
You ....
A:
....
let me inquire around and call you back.
HMJr:
Will you? And then - a question on this
administration, I'm going to ask for a
Saturday morning appointment, you see, and
then if - if you wanted to get together with
me before that, I'd be very glad to, with
your people.
A:
Yes.
HMJr:
I mean, if we wanted to have a trial run
beforehand.
A:
Ah - all right. Do you want to hear from me
before you ask for it, or are you going to
ask for it?
HMJr:
No, if -- would you like to have me -- I'd be
glad to wait.
A:
Well, I - I think I might give you some idea
of what has been happening the last few days,
and whether this -- whether he would think
that this was a good thing to talk about now,
or whether it would upset him. But, at any
rate, let - let me just make an inquiry and
call you back.
HMJr:
You'll call me back or what?
A:
Yes. Henry, I - I talked with
....
HMJr:
No, I - no, I'll -- you mean it will be
some time today, won't it?
Regraded Unclassified
260
- 5 -
A:
Oh, yes. It'll - I'll try to do it before
lunch, but I may not be able to get hold of
Larry Duggan before lunch.
HMJr:
Right.
A:
And while you were away, I talked with Harry,
and said that when you came back, I thought
that it would be important for me to have a
talk with you too
HMJr:
Yes.
A:
on -- there're are three things now
which are bothering us here. One 18: what
should we do about these Dewey hearings
which have been going on this week?
HMJr:
Oh, yes.
A:
Shall we leave that to you, and just stay out
of it, or should we take any part in it --
what are you going to do and all of that --
that - that won't take very long, but I've -
I've had a little talk with Sol, and - and
I think we ought to
....
HMJr:
Look, are you free for lunch tomorrow?
-
A:
Ah - let me look at my book. I think 80.
(Pause)
HMJr:
Hello?
A:
Ah - yes.
HMJr:
Well, why don't you come over and I'll have
Harry here, and Luxford, and is there anybody
you'd like to bring with you?
A:
Well, I might bring Pete if it's all right.
HMJr:
Fine.
A:
And, then the other two things
....
HMJr:
I mean, then I'll look for you and Pete
tomorrow for lunch, and we can talk about
this or anything else that we have up.
261
- 6 - -
A:
Yeah. The two other things ....
HMJr:
Please.
A:
....
one of them was reaching a settlement
with these exiled neutrals on the troop-pay
business.
HMJr:
I'm not familiar with that.
A:
Uh -- well, you talked with Stettinius about
it. It's whether we should reimburse them
for the currency which they give us and which
we use for troop pay.
HMJr:
Oh, my friend Madame Queen of the Netherlands.
A:
(Laughs)
HMJr:
Is that it?
A:
Well, I don't know that the Queen 18 in it.
HMJr:
Well, I - - I
....
A:
But, it's the - the Netherlands, Belgium and
Norway.
HMJr:
Oh, wonderful ! We'll have a good time.
A:
(Laughs) But I - I
....
HMJr:
That's wonderful !
A:
....
I want very much to work out something
on that for reasons which I'll tell you.
HMJr:
Fine. I (Laughs) - I hope you have easier
going on that than I'll have on the Argentine.
A:
All right. Then the final thing ....
HMJr:
Yeah.
A:
1s: should we have -- begin to look over
....
the list of people that you would want to
have on a delegation, if we sent out invitations
Monday ....
HMJr:
Yeah.
262
- 7 -
A:
....
you will immediately be under pressure
from the press.
HMJr:
That's right.
A:
I think you ought to go over the Congressmen
and see which ones you think are best.
HMJr:
Fine.
A:
Now, we want to recommend to you, that as soon
as we find someone from the banking fraternity
that you can put on
....
HMJr:
Good.
A:
....
and we'll undertake to soften any fellow
down, and get him in shape, if we can, who is
being recalcitrant about it, but I think that's
going to be on your neck very soon.
HMJr:
Well, we're -- anything else?
A:
No, those three were the only three.
HMJr:
Well, those three, and for hors d'oeuvre
we'll have Argentina.
A:
All right. That sounds as though I was going
to have indigestion when I got through.
HMJr:
(Laughs) No, well, then I'll give it to you
as dessert.
A:
(Laughs) What - what time? Do you want us to
come to your office?
HMJr:
Yeah. One o'clock.
A:
One o'clock.
HMJr:
And will you tell.....
A:
I'll tell Pete.
HMJr:
Thank you.
A:
All right.
HMJr:
And then I'll hear from you in the next couple
of hours when I - about going ahead and asking
Mr. Hull?
263
- 8 -
A:
Yes.
HMJr:
For Saturday morning?
A:
You bet.
HMJr:
Thank you.
A:
All right, Henry.
264
- 9 -
H.M.JR: I couldn't say no on that.
MR. LUXFORD: I think that is perfectly all right.
I was going to say, either that Hull would go along on
Acheson's approval, because Acheson has very strong
powers in this field of freezing. He has been the big
block all the way through. Now, I think he was willing
to go along on a freeze until you got to this Marvin Jones
thing. Now, it may be we will just have to review that
when it comes up. "You fellows haven't even allowed it
so far." That is true. State hasn't allowed that
purchase.
H.M.JR: Why don't I call up Marvin Jones and ask
him, and tell him I am getting red hot on this thing?
MR. LUXFORD: Did you see the report he sent? It
was a poor report - in fact, it was specious in the argu-
ments he used.
H.M.JR: I want to check this thing. Is he think-
ing of buying corn?
MR. LUXFORD: I think that is true.
H.M.JR: Let me just tell Marvin I am on the verge
of recommending definite freezing. Now, whether the
English come along or not, I want to know his reaction.
MR. LUXFORD: I would make it clear to him that isn't
the same as what we talked to him about last time.
H.M.JR: No.
MR. LUXFORD: We can always license it out if we
have to.
H.M.JR: That isn't an economic blockade.
MR. LUXFORD: That is right.
Regraded Unclassified
265
- 10 -
H.M.JR: That would simply mean that they could
continue to do business independently of the United
States.
MR. LUXFORD: I can give you what we agreed to in
January with Acheson. It is a very good position. We
agreed with Acheson that we would freeze and then we
would deal on a day-to-day basis with the problems that
came up with respect to Argentina.
Now, Acheson fought very bitterly for a general
license on trade at that time. We were just as bitter
against a general license. We told them that we would
administer our control 80 that, in effect, there would be a
general license, but there wouldn't be any public docu-
ment of that kind. That would give us an opportunity
to see what was going on each day, and we could stop
transactions in consultation with State.
Our thought was we would begin to put the screws
on little by little. We would say, "Why do you do this?"
And keep fighting and make ourselves annoying to State
until we would get complete control.
H.M.JR: Yes. Under this thing we have now, he
couldn't buy any corn from the Argentine, could he?
MR. LUXFORD: Without our approval.
H.M.JR: We wouldn't give it.
MR. LUXFORD: We would do everything we could to
block it. In other words, I wouldn't ever let Acheson
get me into a yes or no position on that. Say, "That
depends on the facts at the time."
H.M.JR: Why should I stir up Marvin Jones?
MR. LUXFORD: I wouldn't.
H.M.JR: I think I had better leave him alone. If
I am going to follow a position, it will be that I want
to freeze. As each thing comes up--
Regraded Unclassified
266
- 11 -
MR. LUXFORD: We will just scream at every item.
H.M.JR: We'll screen it.
I am going to say I think we should freeze. Now,
what I do need is 8. list of the things on the economic
front that we know they are doing to the Germans, and
80 forth, and so on, see?
MR. LUXFORD: The one I can :ive you for the Presi-
dent carries the whole picture. I will bring it up to
date.
H.M.JR: Yes.
MR. LUXFORD: All right, fine. I take it I won't
have that letter ready by two o'clock. No need of it now.
H.M.JR: No.
MR. LUXFORD: Now, Joe O'Conneil has talked to Bloom
about the Dewey bill. In fact, we had auditors up there
at the hearings. we have been in consultation each
morning about it.
H.M.JR: Well, I will get too many people and I
can't handle it. No. I am glad you told me, but that is
8 minor thing. I am not going to worry. This other
thing he has got in mind - the Netherlands business--
MR. LUXFORD: That is what he is really burned up
about.
H.M.JR: Do you know anything about the Netherlands
business before I go into that?
MR. LUXFORD: You should have a little discussion
with us before then on that point, because we know what
the line is.
H.M.JR: Wait a minute. I have ten minutes. We
will do it right now.
267
- 12 -
MR. LUXFORD: Or get Bill Taylor and Aarons in
here.
H.M.JR: You know what it is, don't you?
MR. LUXFORD: Yes.
H.M.JR: All right.
268
THE SECRETARY OF THE TREASURY
WASHINGTON
My dear Cordell:
On March 3, 1944 Messrs. Acheson, Duggan and Collado
discussed with me the problems involved in imposing complete
economic sanctions against Argentina. At that time we
discussed the possibility of freezing Argentine assets. It
was concluded, however, that it would be preferable if the
United States and the United Kingdom could jointly impose
complete economic sanctions against Argentina and I under-
stood that discussions to that end would be initiated.
Since that date Mr. Acheson has been kind enough to
keep me informed of the reaction of the various Combined
Boards to the proposal for joint sanctions. On the basis of
these reports, and in the absence of any information suggest-
ing British approval for the program, it seems quite apparent
that there is little likelihood of any joint program of
complete economic sanctions materializing at this time.
Meanwhile, from all appearances, the situation in Argentina
continues to deteriorate. grow worse,
Accordingly, it is my conviction that we should freeze
Argentine assets without delay and regardless of whether or
not the British or other countries find it possible to take
parallel action. I am hopeful that you, too, share my opinion
in view of your decision to freeze Argentina in January and
your forthright statement on April 9, 1944 that we can no
longer acquiesce in the neutrals' drawing upon the resources
of the allied world when they at the same time contribute to
the death of troops whose sacrifices contribute to their
salvation as well as ours.
The continued pro-Axis actions and policies of the
present Argentine Government indicate, in my opinion, the
futility of expecting that Argentina will itself plug the
gap she has made in our economic defenses. I suggest that
we should now recognize Argentine's neutrality ae we have
that of Spain, Portugal, Sweden, and Switzerland when we
POLYICTORY
BUY
that Argenton is as been
UNITED
STATES
WAR
BONDS
AND
STANDS
Regraded Unclassified
269
- 2 -
froze those countries on June 14, 1941. There can no longer
be any doubt that the break in relations which the Argentine
Government announced on January 26 was no more than B. gesture
designed to forestall impending economic sanctions by the
United States. Argentina is still "neutral." In its neutrality
it is necessarily an instrumentality and even a party in
financial transactions of benefit to our enemy.
There can be no doubt that the extension of freezing
control to Argentina is fully justified on economic warfare
grounds. Axis industries and banks in Argentina have been
and are still free from supervision or control and constitute
a medium through which enemy operations may be conducted as
well as a source of funds for such operations. The Argentine
Government is today rendering affirmative assistance to enemy
firms and protecting them from the effects of our economic
warfare program; it awards large contracts to Proclaimed List
firms even without going through the formality of competitive
bidding; it procures materials for Proclaimed List firms that
have difficulty in supplying themselves; it forces pro-Ally
firms to furnish materials and act as sub-contractors to
enemy firms. The government-owned banks, the Banco de la
Nacion and Banco de la Provincia, have rendered and still
render financial assistance to Axis banks and other enterprises.
Argentina is today the only major channel of trade and communi-
cation between the enemy and the entire Western Hemisphere.
It is a haven for Axis spies and Axis funds, a waiting
sanctuary for Nazi and Fascist leaders.
The evidence indicates that the present Argentine
Government may be Axis-inspired through control over members
of the Army by the technique of loans, bribes, etc. In any
event, Argentina is the point from which the enemy may safely
and effectively operate and from which Axis efforts throughout
this Hemisphere are coordinated and directed. Thus, Argentina
is able to finance propaganda, sabotage, and espionage in this
Hemisphere to the detriment of our war effort. So long as our
financial facilities are open to Argentine nationals without
regulation our enemies also have access to free funds in this
country for such purposes. Argentina, therefore, constitutes
a channel through which enemy interests can slip through our
economic defenses.
Regraded Unclassified
270
- 3 -
Our Embassy in Argentina reported recently that following
the break in relations, the Argentine Government has done
nothing to hamper in any way the pro-Axis activities permitted
by an administration which is progressively more beneficial
to the Axis cause. On April 12, 1944 the press reported that
Argentina had gone 80 far as to prohibit the publication of
either the United States or British blacklists- measure
unique amongst even the neutrals.
I therefore think it is imperative that we freeze
Argentine assets: to prevent the use of the financial facilities
of the United States for transactions harmful to our cause and
beneficial to that of the enemy. You may, of course, rest
assured that if Argentine assets are frozen, the Treasury will
cooperate fully with your Department in administering the
program.
I have discussed this matter with Mr. Crowley and he
had authorized me to state that he joins me in making this
recommendation.
Sincerely,
Honorable Cordell Hull,
Secretary of State.
Regraded Unclassified
271
April 27, 1944
12:55 p.m.
NEGOTIATIONS WITH THE DUTCH
Present: Mr. Luxford
H.M.JR: Review that for me.
MR. LUXFORD: I think Harry probably told you that
the Dutch were in yesterday and told us that they had
turned over the currency.
Now, the arguments that are being used by State are
principally these, that under the Reciprocal Aid Agreement
that the State Department and Lend-Lease entered into with
each of these countries, it was agreed that we would--
rather we said we would not ask for reciprocal aid to cover
the expense of our troops or of our administrative personnel,
Now, Acheson and Rostow of State, as well as these
refugee governments, take the position that that meant that
we would not be asking them for currency to pay for those
expenses., All that the agreement actually said was that
we wouldn't ask for it as reciprocal aid. What we say is
that we are not now insisting upon it as reciprocal aid.
Rather, we are saying that they furnish us the currency
and we will settle accounts later, all the accounts, whereas
they insist on troop pay and administrative expenses being
excluded from the currency agreement.
The Dutch take this attitude: They say that, "By what
token do you ask us to finance that kind of expenses and
at the same time you refuse to make any loans? In fact,
that is the thing that has embittered them a great deal,
the turn down on the three hundred million dollar loan
and the recent request for a smaller loan. They say, "Now,
you have indicated to us that you won't extend financial aid
to us, and then you have the gall to turn around and ask
us to stake you in Holland." That is the line they take.
Regraded Unclassified
272
- 2 -
H.M.JR: That makes sense to me. Why not?
MR LUXFORD: You can't argue with me. I am telling
you the Dutch position.
H.M.JR: We are going in to free your country.
MR. LUXFORD: And we are not saying we won't pay them,
"But let's wait until we get the accounts, and we want to
consider our payment to you at the same time we consider
what you owe us." That is the argument.
H.M.JR: That doesn't shake me.
MR. LUXFORD: It shouldn't. The biggest argument we
have is this Congressional argument, that we are not going
to make commitments without Congressional approval.
H.M.JR: You know what we told them the other day.
Let me just ask this thing: Do we know anything about
this, some committee that must be in London that is handling
all these things that corresponds to McCloy's committee
here?
MR. LUXFORD: Yes, the CCCAL, the Combined Committee
on Civil Affairs, London, which was originally a subordinate
committee to our Combined Committee here, but more and more
usurping the functions of our Committee, and the center of
operations is there. We are not represented.
H.M.JR: Who appoints those people?
MR. LUXFORD: I know that the State Department appointed
two of their men to the two civilian jobs, although the
British have a British Treasury man both here and there.
H.M.JR: Let's bring that up. Say, "I don't know what
is going on in London; we are not on the Committee." We
have every right to be over there.
I personally think Stimson has pulled a fast one on
me.
Regraded Unclassified
273
- 3 -
MR. LUXFORD: Stimson and State. I don't think
that Stimson would interfere with the Treasury representa-
tive unless he had State behind him.
H.M.JR: Is McCloy back?
MR. LUXFORD: Yes.
There is a way to winning both State and Stimson on
this, if we will send Treasury Attaches to the refugee
governments. That is, don't deal with this through military
circles, but deal as financial representatives of the
Treasury with each refugee government, because we know when
the Army goes into those areas they are not going to have
control of civilian operations. They have agreed that is
going to be with the local government.
H.M.JR: Well, the only trouble is that that might
make it more difficult for Eisenhower.
MR. LUXFORD: I think not, because his directive says
for him to stay out of that.
H.M.JR: How would it be if I asked McCloy to come over
and see me? I want to know what is going on over there.
Why not go right to the top?
MR. LUXFORD: I see no reason why you shouldn't.
H.M.JR: I would simply say to McCloy, "You are back,
and I want to know what is going on.
MR. LUXFORD: You might want to speak to Harry about
that to get his slant on it, but I can see no reason why
you aren't entitled to & report of what is going on.
I know he saw Churchill when he was over there. As
I understand it, he was pretty proud of that.
(The Secretary holds & telephone conversation with
Mr. McCloy, as follows:)
Regraded Unclassified
274
April 27, 1944
12:58 p.m.
John
McCloy:
Hello.
HMJr:
This is Morgenthau.
M:
Yes.
HMJr:
How are you?
M:
I'm fine.
HMJr:
Look, Jack, I wondered if you could drop over
some time tomorrow morning, and tell me what's
going on on the financial front in London,
because we know nothing.
M:
Okay, Henry. I can tell you -- I can tell you
all that I know very shortly. When I was over
there - I - I didn't go over for that purpose.
HMJr:
No.
M:
I went over for something entirely different,
but I - I made a couple of inquiries about it,
and I - can let you know what I know.
HMJr:
What time in the morning would be good for you?
M:
Hold the wire.
HMJr:
The earlier, the better, for me.
M:
I've got - ah - twelve o'clock appointment 18
the only thing I've got -- ah - any time.
Ten - eleven - whatever you say.
HMJr:
Ah
M:
Nine, ten, eleven
....
HMJr:
Eleven would be good.
M:
Eleven o'clock?
HMJr:
Yeah.
M:
I'll be there at eleven.
275
- 2 -
HMJr:
Do you want to have me -- do you want to
see me alone, or what?
M:
Oh, no. I don't care. I'll see you with
anybody.
HMJr:
Well, then, I may have White ....
M:
Yeah.
HMJr:
.... and Luxford here.
M:
Good. Fine. But I - I won't have much in
the way of - I'll tell you what little --
what few little problems they had that -
that were just translated to me indirectly,
and what the personnel situation was, and
that's all.
HMJr:
Well, I didn't know.
M:
Yeah.
HMJr:
If - if you'll take the time, I'll appreciate
it.
M:
I'll be over at eleven.
HMJr:
Thank you.
M:
Good-bye.
276
- 4 -
H.M. JR: He says he only knows a few little things;
that isn't t what he went over on.
MR. LUXFORD: Taylor should be in.
ECONOMIC FINANCIAL AND SHIPPING MISSION
OF THE
KINGDOM OF THE NETHERLANDS
WASHINGTON D C
NEW YORK CIT
25 BROADWAY ROOM
FINANCIAL
DON
TEL.
BOWLING бисти
No.2
Confid
al.
April 27,
4.
dr.g.white,
U.S. Treasury De artment,
Washington - D.C.
Dear wr.White,
Further to my letter of April 24th No.385, in which I
informed you of the establishment of a rate of the Pound to the
Guilder of 10.891, the Wetherlands Minister of Finance now wires
me to ask whether the U.S. Treasury Department agrees to apply
the Dollar - Guilder rate corresponding with this Guilder -
ound rate on the basis of the existing Dollar - Sterling rate.
If perhaps .ir.Taylor could give me a ring at BO-wling Green
9-2226, I would then be ble to reply to Mr.van den Broek's
cable.
I regretted to learn from Mr. Crena de Iongh that you had no
official information to the effect that the Netherlands curren-
cy amounts required by the American Commander-1n-Chief, had been
laced at the Intter's dis osal by our Government. Had I known
that you lacked such information, I would, of course, have In-
formed you thereof, but I TPS under the impression that you had
received word directly from the Commander-in-Chief. I under-
stand however, that Mr.Kleijn Molekamp has read to you the n-
tents of the telegram which was received from our Governme
in this matter.
Yours very truly,
Milmum
H.Riemens.
Regraded Unclassified
ECONOMIC FINANCIAL AND SHIPPING MISSION
OF THE
KINGDOM OF THE NETHERLANDS
WASHINGTON =
NEW 1041 city
400M
FINAN
ISION
No
BOWLING GREEN
Conf
(ial.
April 24, 194
Mr. White.
U.S. Treasury Department,
Washington, D.C.
Dear Mr. White,
The Netherlands Minister of Finance has informed the
Economic Mission that the rate of the Pound to the Guilder
prevailing after the invasion of The Netherlands has been
fixed at 10.691, corresponding to the rate of the Pound to
the Belgian Franc of 176.625.
The Secretary of the Treasury, we are furthermore in-
formed, will receive official notification by letter from
the Minister of Finance, which will be handed through the
intermediacy of the Netherlands Ambassador.
Since this official notification will take some time,
it was thought desirable to inform you forthwith of the
above.
At a rate of $4.- to the Pound, this would bring the
value of the Guilder at 37 1/2 cents, whereas the value of
the dollar 88 expressed in Guilder cents, would be 2.67.
Yours very truly,
Mhines
H.Riemens.
Regraded Unclassified
279
April 27, 1944
2:35 p.m.
Operator:
Go ahead.
HMJr:
Hello.
Dean
Acheson:
Henry.
HMJr:
In person. In - in the flesh.
A:
I called just a few minutes after you went
out for lunch.
HMJr:
I see.
A:
I've inquired around here
....
HMJr:
Yeah.
A:
....
and so far as the Argentine situation
is concerned, there isn't anything particularly
new either way.
HMJr:
Right.
A:
We're not making any headway, and sometimes
it looks darker, and sometimes -- it's a
struggle between two men -- this Perron
and Perlinger.
HMJr:
Yeah.
A:
And, it's very - very bad. Now, as to when
you take it up, my strong advice to you would
be not to take it up this week with the
Secretary.
HMJr:
Yes.
A:
He's very tired. He's been through a harassing
experience in the last two days which have got
his nerves. on edge, and he - he flies off
quite quickly
HMJr:
Oh.
A:
as I have been experiencing
....
HMJr:
I see.
Regraded Unclassified
280
- 2 -
A:
yesterday and today. I'm afraid if you --
if you give him a really tough one on Saturday,
he - he will react rather -- just in a -- won't
know which way to go - what will happen, but I'm
afraid he won't sleep over the week-end, and
he'll - he'll be in a mess.
HMJr:
Oh.
A:
If we could do it next week -- let him get a
rest, I - I think that we could discuss the
thing much more calmly and
....
HMJr:
Yeah, well
A:
He is - he's quite frazzled yesterday and today.
We've - we've had stuff back and forth between
London and Madrid, and he - - and it's gotten
him - several times he's been on the virge of
doing something that when you finally got him
cooled off, he decided that it was not at all
what he wanted to do.
HMJr:
Well, after all, I'd be glad to take your
advice, and what I'll do 18, I'll ask to see
him early next week.
A:
I think that would be all right.
HMJr:
I think I'll ask for an appointment though --
for next week, or do you think that would
worry him?
A:
No, I don't think 80. That -- it wouldn't
particularly - I just don't want to get him
started worrying about this before Monday.
I'd like it, if he could, to get off early
Saturday and have a day and a half of rest,
because he's really quite tired.
HMJr:
Well, then I - I don't
....
A:
He could arrange an appointment easily for you
at any time, if you
....
HMJr:
Do you think it would be a mistake even if I
said I want to Bee him Monday?
A:
Yes, because he would worry what it is; if you --
if you say you want to see him sometime early
in the week
....
Regraded Unclassified
281
- 3 -
HMJr:
All right.
A:
....
and then you might call up Monday and
say that
....
HMJr:
I'll call up -- I'll call up Monday, Dean,
but - but you fellows get your own minds in
order, will you?
A:
Yeah, we'll talk it over with you tomorrow.
HMJr:
Right.
A:
Preliminary trial, if you like.
HMJr:
Yeah. I'd like to very much.
A:
Sure. We'll -- we'll be glad to go into it
any time.
HMJr:
All right. And I'll - I don't want to
unnecessarily aggravate him, but on the other
hand, I - I am in dead earnest.
A:
Yes. Well, I don't - I don't want to try and
delay you on it, except for his personal
....
HMJr:
Well, we could -- we could make progress
amongst ourselves.
A:
Yeah, I think we - we could go over that,
and then
HMJr:
Are you feeling healthy?
A:
Oh, I feel fine. I'm all right.
HMJr:
I could put the pressure on you.
A:
(Laughs) Yeah, you can give me all the going-
over that you want to.
HMJr:
All right, but I'll - I'll do it very - very
politely, but we'll put the pressure on you.
A:
All right. I'm going to put some pressure on
you
HMJr:
I know you are. I know. I've been schooled
on it.
Regraded Unclassified
282
- 4 -
A:
But I ....
HMJr:
That's all right.
A:
I don't think there's any great issue
between us on - on these Dutch fellows.
HMJr:
Well ....
A:
I think we can work it out all right, anyway.
HMJr:
Okay.
A:
Fine.
HMJr:
Good-bye.
A:
Thank you, Henry.
283
April 27, 1944
2:43 p.m.
HMJr:
Hello.
Operator:
Mr. Mack.
HMJr:
Hello. Hello.
Clifton
Mack:
Hello.
HMJr:
Cliff.
M:
Yes, sir.
HMJr:
In regard to this Bona-Allen Shoe Plant
in Georgia
M:
Yes, sir.
HMJr:
would it, in any way, slow up the Army
if I said to wait until Wednesday when
Mr. Olrich will be here?
M:
Ah - I don't think 80. This of course --
if
this, of course, doesn't tie into the surplus
property program.
HMJr:
-
Oh, it doesn't?
M:
No, this is - this is straight lend-lease.
HMJr:
Oh.
M:
Like the medical operation
....
HMJr:
Oh - oh.
M:
.... they wanted to take over.
HMJr:
I see. Well, do I have to decide something?
M:
No, sir. Ah - I wanted to be sure that you
knew about it.
HMJr:
Yeah.
M:
And we've gone into it very carefully, and I'm
having Mr. Flatley, who is Chief of Contract
and Purchase, be down there in Buford, Georgia,
to look it over and to see that everything goes
all right when we take over the operation.
Regraded Unclassified
284
- 2 -
HMJr:
Yeah. Oh. Well, if you think it's all right,
then ...
M:
I do.
HMJr:
Well, then it's all right with me.
M:
I do.
HMJr:
All right.
M:
Yes, sir.
HMJr:
Did you know that Olrich was coming in
Wednesday?
M:
Pardon? No, I didn't. Next Wednesday.
HMJr:
I mean, that his company 18 giving him a
leave of absence?
M:
Oh, I'm glad to hear that.
HMJr:
Hasn't anybody told you that?
M:
Well, just this morning John said something
about - ah - "Why don't you hold those matters
until the new man comes in?".
HMJr:
Well, he is coming. He'll be here Wednesday.
M:
Well, I'm glad to hear that.
HMJr:
Right.
M:
Fine, and thank you.
Regraded Unclassified
285
FOR VICTORY
TREASURY department
BUY
UNITED
STATES
PROCUREMENT DIVISION
WAR
BONDS
AND
STAMPS
FICE OF THE DIRECTOR
WASHINGTON 25
Mt
April 27, 1944
MEMORANDUM TO THE SECRETARY
This office has been requested by Foreign Economic
Administration to rebuild approximately 1,200,000 pairs
of discarded army shoes for use in its Liberated Areas
Program.
It is intended to conduct the operation of this re-
building at the Bona-Allen Shoe Plant, Buford, Georgia.
The Army Quartermaster Corps, who has operated the
plant under & management contract with the International
Shoe Company since September 1, 1943, has agreed to
transfer the operations at Buford, Georgia to the Procure-
ment Division. The Army has an investment in specialized
equipment and machinery at this plant of approximately
$300,000.
The output of the factory under the Army operation
was approximately 150,000 pairs of shoes per month, and
it is estimated that the production for Liberated Areas
can be increased to approximately 175,000 pairs per month
since the specifications for rebuilding shoes under the
Liberated Areas Program are less rigid than the Army
specifications. Very little new leather will be used since
composition soles and plastic insoles will be substituted
for the leather now used by the Army.
The proposal contemplates the continuance of the
management contract with the International Shoe Company,
and that operation will begin May 1, 1944. Representatives
of this office have already surveyed the Army operation and
will be present on May 1, 1944 to supervise the change-over.
Chiftan EL back
Director of Procurement
Regraded Unclassified
286
April 27, 1944
2:48 p.m.
HMJr:
Hello.
D. W.
Bell:
Hello.
HMJr:
Dan.
B:
Yes, sir.
HMJr:
In this discussion this morning, it came out
that the Russians had asked for a hundred
pounds of ink, and that the Bureau of Engraving
said it would take a month. Hello?
B:
Yeah.
HMJr:
I wish you'd look into that, and find out
just what is the minimum time they could give
them the ink that they want.
B:
Well, they -- Al told me about a -- he thought
it was about a month, but he'd try to beat 1t.
HMJr:
Well ....
B:
He's doing everything he can to shove it.
HMJr:
Oh, tell him that's entirely unsatisfactory
to me.
B:
Well, I find that he always beats his time
....
HMJr:
No, but I want to know why it can't be done in
a day or two.
B:
Oh, well, it can't be done in a day or two.
I mean, we've got to do certain things.
HMJr:
Well, I want to know what.
B:
Okay.
HMJr:
I want to know why it can't be done in a
day or two.
B:
Yeah, but I know he's working hard on it -
he's ....
HMJr:
Well, will you tell him I want to know why
it can't be done?
Regraded Unclassified
287
- 2 -
B:
All right.
HMJr:
If you please.
B:
All right.
Regraded Unclassified
288
April 27, 1944
4:00 p.m.
TRANSFER OF GERMAN CAPITAL
Present: Mr. White
Mr. O'Connell
Mr. Luxford
Mr. DuBois
Mrs. Klotz
H.M.JR: I don't know who should handle this. I
will be very quick. This is 8 very interesting request
from Colonel William C. Bentley, Acting Assistant Chief
of Air Staff, Intelligence. What they want to know is--
I will give it to whoever the person is who should get it--
can we advise them whether since the recent bombing there
is any flight of capital from Germany.
They think that the big boys are scared and the
movement is on, but they have no way of knowing, and they
don't know how to organize it. They would like to cooperate
with us. To them it is very important, see?
So I immediately put in my two-cent plug for the
Argentine, if they want to get busy.
I mentioned this Lieutenant Colonel Towson. He had
never heard of that. He said G-2 doesn't work with them,
and "We are on our own. We want to know what the Treasury
can do to help us."
MR. WHITE: I suspect if there is any flight of capital
it would go chiefly to four places: It would go to Sweden,
Switzerland, Argentina, and possibly Spain, but much less
so. Now, we have a man in--
H.M.JR: Whose job would this be?
MR. LUXFORD: I think it would be yours (to White).
Regraded Unclassified
289
- 2 -
MR. WHITE: It is probably closer to what we know in
our field, but I don't know how much we will be able to
get, because it is a question of getting secret information
in the field.
H.M.JR: What about OSS?
MR. WHITE: OSS might have it.
H.M.JR: Well, you know, I would like to meet the
Army man who is not in OSS who knows what OSS is doing.
This man says, "Whatever they are doing, we don't know."
Anyway, will you take it on?
MR. WHITE: Yes. I don't think we can get much
information. Can we cable for that information to our man
in Sweden?
H.M.JR: Sure.
Can anybody in Switzerland help us?
MR. WHITE: I don't know. State Department has
people there, but we don't. We would give our left leg
to have somebody in Switzerland.
H.M.JR: Don't we have somebody there?
MR. LUXFORD: The War Refugee Board has.
H.M.JR: OSS must be lousy.
MR. LUXFORD: They have Allan Dulles in Switzerland.
H.M.JR: Look, let's try and do a job. I don't think
we ought to use the War Refugee Board, but let's try and
do a job.
Now, this is what happened: I spoke to Mr. Acheson
today--I am trying to keep this thing quiet. He said he
wanted to find out about freezing Argentina, and he came
back this afternoon--this is all very much in the room--
Regraded Unclassified
290
- 3 -
and said, "I will tell you something. You have asked me,
and I would like to advise you not to speak to Mr. Hull
Saturday. The man is absolutely groggy. He has had two
very unpleasant days over Spain. I am afraid if you went
to see him Saturday he might lose his temper. He almost
did something on Spain, but we got him out of it."
So Crowley evidently just thought--you know, he was
going to go ahead. I imagine what he was going to do was
to stop oil to England.
I said, "Well, can't I ask for an appointment Satur-
day?"
He said, "Well, you can ask for an appointment. If
he knows what it is, he will be worried and won't get any
rest. If he doesn't know, he will be worried. I am really
asking you to leave him alone until Monday; he is so upset.
The last two days have been very difficult for him."
So the war can wait. I can't, in the light of that,
can I?
MR. LUXFORD: No.
H.M.JR: I can't, because Acheson has been so good
to us. In view of that recommendation I can't call the
old boy up.
MR. LUXFORD: You see, I think there is another
explanation from what Crowley said. I think that Hull
is getting to the point where he wants to crack down, and
Acheson has had all he can do to keep him from doing it.
H.M.JR: And he evidently has kept him--he said, "I
have kept him from making a major mistake.
I said to Dean, "How is your health?"
He said, "Fine."
I said, "O.K., we will go to work on you."
Regraded Unclassified
291
- 4 -
So then he said, "Well, I am going to work on you
on Holland, but that won't be difficult.'
MR. WHITE: On Holland?
H.M.JR: Yes.
But whatever Hull wanted to do, Acheson kept him
from doing it.
MR. WHITE: Did Hull want to do something that was
bad or good?
H.M.JR: I don't know. This is what Crowley told
us.
MR. LUXFORD: I was here.
H.M.JR: I was trying to save you (White). What
Crowley told us was that Hull has been wonderful, and he
went ahead and said, "No oil to Spain," even though the
English were going to continue to ship oil, because the
English insisted that they needed certain things that
Spain had.
Then he said the whole business of Lend-Lease--here
he said we lend-lease oil to England, and England sends it
to Spain. Putting two and two together, I take it that
Hull most likely was going to hold up the oil going to
England.
MR. LUXFORD: In any event, he was going to say, "We
will cut it off and England can do what she wants to."
MR. WHITE: Acheson stopped him from making that mistake.
H.M.JR: He saved him.
MR. WHITE: In other words, Dean Acheson remains
Dean Acheson, only smoother.
H.M.JR: But I can't do it in the face of his saying
that I am going to upset the man and he isn't going to sleep
for two days.
Regraded Unclassified
292
- 5 -
MR. WHITE: If he is groggy, I would suggest you see
him. When a man is groggy on the ropes, that is the time
to go after him.
H.M.JR: I agree, but I couldn't in view of the way
Acheson has acted toward us. I couldn't go to Hull without
seeing Acheson first.
MR. WHITE: No, I am sure you couldn't.
H.M.JR: Here is this thing. It is just a formal
reply from Gromyko, nothing new.
MR. WHITE: On that same line, Currie wanted me to
inform you when I could that they were going after Sweden,
and they have something apparently very hot on the SKF.
MR. LUXFORD: It would be over here, too, if they had
it over there.
H.M.JR: There is a Mr. Mohl--I am now talking to
the Refugee Board--who has for twenty years been an indus-
trial engineer in Palestine. He is outside now. A Doctor
Magnes to find out what post-war planning we are doing to help
in Palestine sent him to us. He is here trying
Palestine. It meant nothing to me. Whether you fellows
want to talk to him--he is an American, I gathered, 8.
naturalized Englishman. He is in the employ of the English
Palestine Government.
I old him I didn't know whether you people wanted to
find out something about the situation.
MR. DuBOIS: I would like to talk to him.
H.M.JR: All right. He seems to be fairly intelligent.
What are you shuffling your papers for?
MR. WHITE: Are you interested in seeing that cable
to Eisenhower?
H.M.JR: Wait 8 minute. Don't you think we had better
wait now if Acheson is going to do a job on me?
Regraded Unclassified
293
- 6 -
MR. WHITE: Oh, no. This relates only to the
availability of the currency. The job that Acheson is
going to try to do on you is to pay--
H.M.JR: That is all right. Are you all right for
tonight--for the rest of the day?
MR. WHITE: We had a couple of things before you see
Acheson tomorrow at lunch. I understand you are going to
discuss those four things. You will see us before?
H.M.JR: Yes.
Regraded Unclassified
294
Secretary gave Mr. White copy of this
letter 4/28/44 -
Follow up 5/4/44 with Hijr-
:
" 5/5/44 with White
"
4 5/9/84 - rephis not received.
SECRET
295
STREET
WAR DEPARTMENT
By Arth
HEADQUARTERS OF THE ARMY AIR FORCES
IN
WASHINGTON
Any A/F Why wiss
Date
AFIAN+EU
27 APR 1944
MEMORANDUM FOR MR. MORGENTHAU
1. It is believed that the Treasury Department has available or
can obtain information regarding the flight of capital from Germeny
which would be extremely valuable to the Army Air Forces.
2. The Army Air Forces is engaged in a secret study of a nature
which involves analysis of conditions inside Germany. Certain of the
factors to be considered, such as morale, are intangible and incapable
of accurate measurement because of B. lack of factual information. It
is felt that measurement of the flow of funds from Germany would con-
stitute an important piece of evidence which should be regularly
followed.
3. It is requested that the Treasury Department provide informa-
tion regarding the flight of capital from Germany during the period
1938 to date with particular attention to any trends developed during
the latter stages of the Combined Bomber Offensive (September 1943 to
date). It is suggested that the matter be coordinated by the Treasury
Department directly with the Assistant Chief of Air Staff, Intelligence.
WILLIAM C. BENTLEY
Colonel, GSC
Acting Assistant Chief of Air Staff,
Intelligence
PORVICTORY
BUY
UNITED
STATES
WAR
BONDS
AND
STANDS
SECRET
Regraded Unclassified
296
fryet-Ber
Tuesday, May 16.
Hyr - 6/1/47-
Follow up to see if Dr. White has received replies
to his cables. If not, follow-up again with the Secretary.
5/25- Rephis not yet in -
7
Regraded Unclassified
57328
297
April 27, 1944
SUPPLEMENTARY RECOMMENDATION
BY THE EXECUTIVE COMMITTEE OF THE FEDERAL OPEN MARKET COMMITTEE
TO THE SECRETARY OF THE TREASURY
In our memorandum of March 29, 1944, we recommended that the rate on
Treasury bills be increased to 1/2 of one per cent and the maturity extended to
four months. At the meeting of our representatives with you, concern was ex-
pressed by your associates 6.5 to the effect on the whole interest rate structure
of the abandonment of the 3/8 of one per cent rate. At the same time, our
representatives referred to the fact that an increase in rate would mean an
increase in earnings on the large holdings of bills by the System and expressed
the view that, while this circumstance should not be a determinant of financing
policy, ways could be devised to overcome it, if necessary.
Renewed consideration of our recommendation has further convinced us
that it is sound in principle. Renewed consideration of the Treasury's views
has suggested an adaptation of our proposal that should make it acceptable
without detracting essentially from its advantages. In brief, we now propose
that there be two issues of Treasury bills, one of three-month maturity, which
would be largely if not wholly taken by the Federal Reserve Banks, and one of
five-month maturity, which would achieve the wider distribution we sook in the
market, In order to make this proposal effective, we would recommend that:
1. The Treasury plan to raise funds between drives largely
by means of five-month bills instead of certificates
or longer-term securities.
2. The Treasury offer initially 1.2 bi llion dollars of bills
each week, including 600 million of three-month bills
and 600 million of five-month bills. At the end of each
three-month period, the Treasury would increase the
weekly offering of three-month bills, in order to onable
the System to provide banks with such reserves as are
needed on the basis of 3/8 instead of 5/8 of one por cent.
3. The Federal Open Market Committee direct the Federal
Reserve Banks to establish a buying rate of 5/8 of
one per cent and a repurchase option on the new bills.
4. The Federal Open Market Committee direct the Federal
Reserve Banks to offer each week to purchase from
dealers the amount of the offering of now three-month
bills and to maintain the present buying and repurchase
rate of 3/8 of one por cent on such bills, the rate
being maintained initially to protect existing holders
and subsequently to avoid its disappearance from the
market.
This proposal has the following advantages:
0. By offering 1.2 billion dollars of bills a week, Follow- the
Treasury could raise 8,0 billion of funds. be
outstanding 7.8 billion dollars of three-month
ing the completion of both cycles, there would
bills (600 million a. week for 13 weeks) and
Regraded Unclassified
298
-- 2
April 27, 1944
13.2 billion of five-month bills (600 million
a week for 22 weeks), making a total of 21
billion, compared with the present 13 billion.
This amount of new funds would cover the maximum
necessary interim bank financing in 1944.
b. The rate on the now five-month bills would be in
line with the present pattern of rates as indicated
by the market for certificates of indebtedness that
mature in five months, but tho difficult task of
maintaining a market pattern between 3/8 and 7/8
of one per cent would be relieved in considerable
measure.
C. The net cost to the Treasury would probably be no
larger than if the financing were done partly with
3/8 of one per cent bills and partly with 7/8 of
one per cent certificates or higher-rate securities.
What the Treasury would lose by shifting some of
the bills from 3/8 to 5/8 of one per cent would
be regained by shifting from certificates at 7/8
of one per cent to bills at 5/8 of one per cent.
To the extent, moreover, that the higher-rate bills
proved attractive to nonbank investors, so that
they could be used to reduce materially the amount
of Treasury financing to be done indirectly through
the banks, the net cost of the Treasury's borrowing
would be less than under the present program.
d. It would eliminate the offering of certificates or
longer-term securities between drives. Such
offerings require special announcements that call
attention to direct bank financing and are an
indication that the Treasury has not obtained
sufficient funds from nonbank investors. Such
offerings, moreover, involve problems of handling
subscriptions and making allotmonts and in the
case of certificates necessitate annual refunding
offerings. Offerings of bills, however, are more
or less routine and can be used to provide whatever
amount of residual financing is needed and whenever
it is needed.
e. Treasury bills would regain some of the character of
market obligations, whereas now they ¿TO tending to
become almost solely a medium for Federal Reserve
financing. Banks are now keeping their holdings of
three-month bills at low levels, because of the un-
attractive rate, and are purchasing certificates for
their shortest-term investments. The higher rate
on bills would result in an increase in commercial
bank buying and holding of bills and would encourage
banks to meet fluctuations in reserves through changes
in their bill portfolios rather than through buying
and selling certificates, notes, and bonds.
Regraded Unclassified
299
-- 3 --
April 27, 1944
f. More important, there would also be an increase in
the buying and holding of bills by business concerns,
which are now holding large amounts of cash on
deposit with banks. Since bills are as liquid
as deposits, business concerns could reduce their
deposits substantially and meet some of their
fluctuating needs for cash by changes in their
bill holdings rather than through bank deposits.
By this process, the amount of nonbank invostment
in Government securities would be increased, and
the amount of necessary bank financing would be
reduced.
It is suggested that these recommendations be put into effect as
soon as possible so that they will immediately become a part of the Treasury's
financing program for the remainder of the year.
300
APR 27 1944
Dear Dr. Mater:
I have for reply your letter of April 15, in which you
advise that you are considering Dr. Peter n. Odegard among other
candidates for the presidency of the University of Oregen and
request my appraisal of him.
Dr. Odegard was selected by me to serve as an Assistant to
the Secretary at a time when there was confronting the Treasury
Department the task of raising unprecedented billions to finance
the war, and in this capacity be assisted with the members of my
staff in developing policies and procedures forming the background
of the War Bond program.
In this field of work Dr. Odegard displayed considerable
constructive originality, making many valuable suggestions.
His judgetet was respected by his associates as well as by.me, m,
and it is my feeling that be contributed in a large measure to
the successful insugaration of the War Bond program.
Dr. Odegard has the qualities of mind and personality
which, it seens to m, are to be sought in the person selected
for the important position mentioned in your letter. His
brilliant mind is complemented by his ability to achieve results
through effective administration. In his relationships with
his colleagues he is particularly successful.
20 is a pleasure to me to have this opportunity to commont
favorably « Dr. Odegard's qualifications.
Very truly yours,
(Signed) I Margenthon, a
Secretary of the Treasury.
Dr. Frederick M. Muster,
Chanceller, Oregon State System
of Higher Bineation,
Engine, Oregon.
CSBson
4-26-44
prog
Regraded Unclassified
301
25
April 22, 1944
Dear Dr. Hunter:
Your letter of April 15, requesting
information about Dr. Peter H. Odegard,
who has been suggested as nominee for the
presidency of the University of Oregon,
has reached this office during the
Secretary's absence. You may be sure that
I shall be glad to bring your letter to
Mr. Morgenthau's attention as soon as he
returns to the office.
Sincerely yours,
(Signed)
H.8.Kletz
H. S. Klotz,
Private Secretary
Dr. Frederick M. Hunter,
Chancellor, Oregon State System
of Higher Education,
Eugene, Oregon.
Regraded Unclassified
302
OREGON STATE SYSTEM OF HIGHER EDUCATION
OFFICE OF THE CHANCELLOR
EUGENE. OREGON
STATE COLLEGE. CORVALLIS
UNIVERSITY of DREGON, EURENE
OASSON COLLEGE OF EDUCATION. MONMOUTH
EASTERN OREGON COLLEGE OF EDUCATION, LA GRANGE
April 15, 1944
UNIVERSITY OF OREGON MEDICAL SCHOOL PORTLAND
SOUTHERN OREGON COLLEGE OF EDUCATION, ASHLAND
Honorable Henry Morgenthau Jr.
Secretary of the Treasury
Washington, D. C.
My dear Secretary Morgenthau:
The Oregon State Board of Higher Education is conducting
a canvass to locate the best possible nominee for the presidency of
University OI Oregon. Several notable names have been suggested, one
of whom is Dr. Peter H. Odegard, Professor 01 Political Science,
Amherst College.
The State Board is interested in having further knowledge
of nis record. Would you be good enough to give us a brief account
OI his qualifications for such a position as the presidency of Univer-
sity or Oregon?
We believe you have in mind the requirements for the leader-
ship of this institution. In normal times the enrollment is 3,500.
The staif membership numbers 450. It has a well-developed campus val-
ued at $7,000,000 and a library of 368,000 volumes. The possibilities
01 leadership at this institution offer a great opportunity to an
ambitious and forthright young administrator. The annual budget is
approximately $1,000,000.
We are naturally particularly interested in Dr. Odegard's
administrative aptitude as manifested by his natural endowments and
his recorded experiences and achievements. His personality and the
skill with which he draws staff members, students and college clien-
tele around him are particularly important in this situation. His
life philosophies as well as his courage would come prominently into
play because of some of the complexities of our present situation. We
are, of course, assuming a scholarly background and an attitude of pro-
found approval toward research and high standards of achievement for
both faculty and student body. The cultural lire of himself and his
family is likewise a matter which will be regarded as foundational.
If you will be good enough to give us your appraisal of
Dr. Odegard, the State Board OI Higher Education and I will be much
in your debt.
Sincerely yours,
Frederick M. Hunter
Chancellor
FMH:RS
Regraded Unclassified
303
Ribbon copy returned to Mr. Blough
April 27, 1944
EMORANDUM FOR THE SECRETARY
From:
Mr. Blough
Subject: Request to be out of Washington May 5 and 6.
(Your approval requested)
My undergraduate college (Manchester College,
North Manchester, Indiana) 18 conferring honorary
LL.D. degrees on my older brother Carman and me on.
May 6. I would like your approval to be absent from
Washington for this purpose from the close of business
on Thursday, May 4, until the morning of Monday, May 8.
While the explanation of the Tax Simplification
Bill, which Senator George this morning indicated he
would like to have, may fall within this period, I am
sure that Mr. Surrey, together with Mr. Shere of my
office, can handle the matter to the Senator's full
satisfaction,
RB
ok.pm7 J
Regraded Unclassified
305
April 27, 1944
MEMORANDUM FOR THE SECRETARY
III
From:
Mr. Blough
Subject: Taxation. (For your information; no action
required)
1. Tax Simplification Bill. There 1s nothing addi-
tional important to report beyond my oral report at staff
conference this morning.
2. Information returns from tax-exempt organizations.
I previously reported informal clearance of the return
form (Form 990) by Mr. Stam and the Ways and Means Committee.
Labor organizations, farm cooperatives, and farm mutual
insurance companies have seen the form, suggested one or
two very minor changes, and expressed themselves as well
pleased with it. The Bureau plans to give them 45 to 60
days to prepare and file the returns.
3. Postwar taxation memorandum. Following your
request to Mr. Paul in staff meeting some weeks ago, he
asked me to prepare a preliminary memorandum on postwar
tax policy. A draft of this memorandum was given to him
last week and I am awaiting his further reaction to it.
4. Cabaret tax. For some reason Mr. Knutson has
not been pressing his bill to lower the cabaret tax. If
he does Bo, the Treasury position (based on your memorandum
and a conference in Mr. Bell's office) 1s to stand by its
previous position while continuing to collect information
regarding the operation of the tax.
5. Use of advertising experts on income tax forms.
Mr. Cann of the Bureau has agreed to the employment of
assistance from the advertising profession in preparing
income tax returns. A conference is to be held today with
Mr. Sullivan, Mr. Fred Smith, and others, regarding the
best procedure for securing this kind of help.
6. Roswell Magill 18 reported to be heading a com-
mittee on postwar taxation for the Tax Foundation, which
heretofore has taken a very conservative pro-business
point of view.
RB
Regraded Unclassified
306
TREASURY DEPARTMENT
WASHINGTON
OFFICE OF
COMMISSIONER OF INTERNAL REVENUE
ADDRESS REPLY TO
April 27, 1944.
COMMISSIONER OF INTERNAL REVENUE
AND SSU
MEMORANDUM FOR MR. SULLIVAN:
In re: Salary increase for Mr. Emil Schram,
President, New York Stock Exchange.
An application is pending for approval of a
proposed contract between the Exchange and Mr. Schram,
as the result of which Mr. Schram would be paid an
annual salary of $55,000 beginning July 1, 1944 and
ending June 30, 1947. Thereafter he would be employed
in an advisory capacity for 8. seven-year period at a
salary of $35,000 a year. There are further provisions
(1) that in the event of his death during the three-
year period his widow would receive $35,000 a year for
seven years from the date of death and (2) that in the
event of his incapacitation during the three-year period
the Exchange would continue to-pay Mr. Schram at the
rate of $35,000 a year for seven years.
Mr. Schram has been paid during the past three
years at the rate of $48,000 a year. The Exchange,
during 1938, considered the position to be worth a
salary of from $80,000 to $90,000 & year, and for policy
purposes it may well be considered that such a rate was
established.
The increase, therefore, from $48,000 to $55,000
may be approved. Some question exists as to whether
from a policy standpoint under salary stabilization
employment contracts for newly created advisory posi-
tions which are not to be filled for some years in the
future should be approved. There sppears to be nothing
in the Act or regulations prohibiting the Commissioner
from approving such an arrangement.
If there are any suggestions as to whether the
FORDEFENSE
contract should be approved in whole or in part, we
BUY
should be glad to have them.
STATES
BONDS
Deputy Commissioner.
Regraded Unclassified
307
4/28/44
Phoned Mr. Mack that Secretary wants him
to wait until Mr. Olrich comes in and dis-
cuss it with him.
308
FORVICTORY
TREASURY department
BUY
UNITED
STATES
PROCUREMENT DIVISION
WAR
BONDS
AND
STAMPS
VFICE OF THE DIRECTOR
WASHINGTON 25
April 27, 1944
MEMORANDUM TO THE SECRETARY:
Mr. Clayton's Executive Assistant, Lt. Col.
J. P. Woodlock, has advised me that the National
Industrial Conference Board has asked that repre-
sentatives concerned with the disposition of surplus
property participate in a panel discussion at the
Waldorf Astoria, New York City, on May 18.
Colonel Woodlock is to represent Mr. Clayton;
Mr. Husbands of the Reconstruction Finance Corporation
is scheduled to participate; and they have asked that
someone be designated to represent the Procurement
Division at this meeting.
The National Industrial Conference Board is
an organization of business concerns in various
activities, and representatives of the Government
and industry take part in their monthly meetings.
Will you please indicate who you wish to
represent Treasury in this program.
X
Olifton E. Mack
Director of Procurement
309
ICTORY
TREASURY department
BUY
STATES
PROCUREMENT DIVISION
WASHINGTON 25
FICE OF THE DIRECTOR
April 27, 1944
1A
MEMORANDUM TO THE SECRETARY:
The sale of 4500 motorcycles has been completed.
Widespread distribution has been effected through
sales to automotive and motorcycle dealers and all
sales were at the ceiling price of $300, with the
exception of 467 unassembled motorcycles in the posses-
sion of the manufacturer, the Indian Motorcycle Company,
which were sold at $250 each. The original offer of
the Indian Motorcycle Company was $140 for the entire
lot.
Discussed general plans for distributing surplus
surgical equipment with Dr. A. L. Faubel representing the
Wholesale Surgical Trade Association.
Discussed plans for disposing of lot of 350 tons of
screws at Memphis with A. M. Jones, Chief, Redistribution
Unit, Bolt, Nut, Screw & Screw Machine Products Section,
WPB. Advertising of this item must be deferred until
further descriptive information is forthcoming from the
Army Air Forces.
A conference was held with Messrs. Herrle and Mitchell
of the American Red Cross. The Red Cross is interested in
obtaining all goods made by its chapters and donated to the
Army and Navy and which are declared surplus to us by
these services. They will use these items for relief and
disaster distribution.
The OPA has approved the application of retail price
ceilings to our surplus passenger vehicles which will permit
us to sell to dealers at prices equal to prices charged
tax-supported organizations. Steps are now being taken
to develop the specific method of sale to dealers.
Clirton E. Mack
Director of Procurement
Regraded Unclassified
310
VICTORY
TREASURY department
BUY
VALTER
STATES
WAR
PROCUREMENT DIVISION
BONDS
ITAMIN
WASHINGTON 25
FICE OF THE DIRECTOR
April 27, 1944
MEMORANDUM TO THE SECRETARY:
M
Hearings by the House Appropriations Committee on
the Lend-Lease Budget for the fiscal year 1945 are to
be held about May 1.
Estimates for Lend-Lease purchases to be made by
the Procurement Division total $1,909,788,656.00,
according to the original letter of requirements sub-
mitted by the Foreign Missions, but it appears that
this total will be reduced to about $1,500,000,000.00,
by the Foreign Economic Administration. The require-
ments include automotive equipment, machine tools, agri-
cultural machinery, road-building, electrical, railroad
and other equipment, iron, steel and other metals,
chemicals, textiles, lumber and rubber products.
Administrative expenses, also included in the
estimates, provide for the employment of 2080 people
as compared to our present force of 2037.
Currently, our Lend-Lease purchases are running
about $100,000,000.00 a month. If the appropriation
requested is approved, this would be stepped up to
about $125,000,000.00 a month.
Clifton E. Mack
Director of Procurement
Doaradod
00
TREASURY DEPARTMENT
311
7
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
APR 27 1944
FROM
Mr. Pehle
MA
I am attaching herewith a copy of
the report of the War Refugee Board for April 17
to 22, 1944.
Attachment.
312
Developments during the week of
April 17 - 22, 1944
1. COOPERATION WITH OTHER GOVERNMENTS
(a) Russia
A reply has been received from the Soviet Government
to the memorandum left by Ambassador Harriman with respect
to the creation and objectives of the Board. This reply
states in substance that the policy of the Soviet Govern-
ment has been, and still is, to aid in every way possible
the victims of persecution by Hitlerite Germany.
In & cable to Harriman we have asked that appropriate
authorities of the Soviet Union be approached in an effort
to ascertain whether, in view of the positive action re-
cently taken by both the United States and British Govern-
ments in reiterating their attitude toward Nazi war crimes
and atrocities, the Soviet Government would take similar
action. We have indicated our belief that such a statement
on the part of the U.S.S.R. would have a profound effect
upon the leaders and people of Rumania and Hungary.
(b) Greek Government-in-Exile
According to a report from the U. S. Legation in Cairo,
the Royal Hellenic Government has welcomed the creation of
the Board and has indicated its desire to cooperate in alle-
viating the refugee problem. A memorandum left with the
Legation in Cairo stresses the great hunger and other
hardships visited upon the Greek people as a result of
German occupation. The memorandum also points out that
persons in danger can escape from Greece with relative
ease because of that country's geographical position.
(c) Turkey
Ambassador Steinhardt reports that the Turkish Govern-
ment has now put into effect a plan worked out before
Hirschmann's departure, for the evacuation of refugees
Regraded Unclassified
313
- 2 -
from the Balkans by rail via Turkey.
We have been advised that Turkish repatriates are also
arriving in Turkey from France, in groups of fifty or so
and at regular intervals, this repatriation being & direct
result of our representations through Hirschmann and Stein-
hardt to the Turkish Government.
With respect to further "illegal" voyages by the "Milka"
and "Maritza" -- that is, evacuations in which the proper
maritime papers, Palestine immigration certificates, and
Turkish entrance and transit visas are lacking, Ambassador
Steinhardt indicates that if the number does not go beyond
500 refugees per month, he is reasonably sure that entry
and transit can be arranged with the Turkish Minister for
Foreign Affairs as each occasion arises, subject to the
limited carrying capacity of the railroad to the Syrian
frontier from Istanbul. Because of the recent substantial
increase in the transit to Palestine from Istanbul of refu-
gees arriving "legally," Steinhardt estimates that this
500 is the meximum number of refugees arriving illegally
each month for whom rail transportation could be provided.
In & cable to Ankara we are advising Steinhardt that
we have now obtained from the War Shipping Administration
and from the Foreign Economic Administration authorization
to commit this Government to the replacement of the "S.S.
Tari,' in the event of the loss of that ship in projected
evacuation efforts, with 8. passenger vessel, as requested
by the Turkish Government. In order to remove the one
remaining obstacle, the granting of safe-conduct by the
German Government, we are requesting that Steinhardt urge
both the International Red Cross representative in Ankara
and the Apostolic Delegate from Istanbul to arrange to see
von Papen in person. Steinhardt is also being asked to
advise us when the "Tari" is ready to depart, in order that
war risk insurance may be placed here.
(d) Switzerland
The appointment of Roswell McClelland as the Board's
Special Representative in Bern, Switzerland, and as Special
Attache to the Legation on war refugee matters, has been
confirmed.
Regraded Unclassified
314
- 3 -
Minister Harrison has reported that the Swiss Govern-
ment has declined to request German safe-conduct for the
"S.S. Tari" in the projected Turkish evacuation on the
ground that Swiss support of such a request would impede
the efforts of the International Red Cross in that direction.
The Swiss Government indicated, however, that it would not
refuse to consider participation in a joint step which other
neutral states might decide to undertake in this matter
for exclusively humanitarian motives. Harrison subsequently
reported that 8. similar position had been taken by the
Swiss Government with respect to IRC representations con-
cerning safe-conduct for the "S.S. Bellacitta."
We have cabled Harrison that both the Swedish and
Turkish Governments have already acted in support of the
IRC request for German safe-conduct for the "Tari" and
we have suggested that Harrison may wish to bring these
circumstances to the attention of the Swiss Government
in renewed efforts to obtain an affirmative decision.
(e) Sweden
We are continuing our efforts to arrange for the use of
& Swedish ship, notably the "S.S. Bardalanda," in Turkish
evacuation efforts.
With respect to the President's statement of March 24,
Minister Johnson reports 8. fairly general coverage in
Stockholm newspapers, with less coverage throughout the rest
of Sweden. Excerpts from the President's statement were
given in official Swedish news broadcasts in the Swedish
language over short, medium, and long wave lengths. The
statement was also relayed through underground channels to
Norway and Denmark and may thus come to the attention of
occupation forces in those countries. Informal requests
by the Legation that prominent government officials publicly
comment on the statement were unsuccessful.
Johnson also reports that the Swedish Government has
agreed to make every effort to hasten action on the part of
the Germans with respect to the granting of safe-conduct
for the "S.S. Tari." The matter of safe-conduct for the
"S.S. Bellacitta" is also being taken up with the Swedish
Government.
Regraded Unclassified
315
4 -
(f) Guatemala
In reply to State's circular airgram of January 26,
Ambassador Long advises that little or nothing is being done
officially in Guatemala toward the rescue or relief of
persecuted elements in Europe, although since 1933 per-
mission has been granted for nearly 1,000 refugees to enter
Guatemala. The Guatemalan Government reportedly permits
the entry of refugees for permanent residence where such
refugees are able to obtain a guarantee of support from
relatives already residents or nationals of that country;
in some instances refugees have been able to gain entry
for permanent residence without local sponsors. However,
in all cases entry is granted only under the provisions of
a law which severely restricts the pursuits of immigrants.
Alleged abuses of entry restrictions led to a. government
decree in March 1939, closing business establishments
owned or operated by refugees, requiring the registration
of business houses, and calling for the licensing of agents
working on a commission basis.
Ambassador Long indicated his belief that if any
representations are to be made to the Guatemalan Government
with respect to the acceptance of refugees, the chances of
success would be greatly enhanced if any such proposal
could be presented in specific terms, particularly with
respect to the number of persons proposed and their probable
length of stay.
(g) Finland
On the basis of informal discussions, Minister Gullion
reports his belief that the Finnish Government would in
all probability issue a declaration with respect to its
willingness to facilitate the movement of refugees. The
Finnish Foreign Office has indicated that, if such a
statement is to be made, its release will be timed to co-
incide with the projected evacuation of certain Jewish
refugees from Finland to Sweden.
In a cable to Helsinki now pending at State, we are
asking Gullion to report on the possibility of using Fin-
land as an escape route to Sweden from German-held Baltic
316
- 5 -
areas, particularly Lithuania, and on the possibility of
cooperation from the Finnish Government in this connection.
2. APPROACHES TO THE SATELLITES
In response to our request that the International Red Cross
send effective representation to Hungary in order to protect
the well-being of groups facing persecution there under
the recent German occupation, the IRC has advised Minister
Harrison in Bern that for the time being it does not con-
template any such special delegation. The IRC is said to
feel that under present circumstances such a mission might
be considered as inconsistent with its traditional and
conventional competence.
Minister Harrison has also reported on recent developments
in the Jewish situation in Hungary. Increasing restrictions
against Jews are noted, including those relating to general
urban accommodations. Aryanization of banks and commercial
and industrial enterprises is said to be proceeding. The
establishment of ghettos or internment centers is also
foreseen. Mass deportations to the east, however, are
reported to hinge upon military developments. Signifi-
cantly, Jews have been forbidden to leave Budapest despite
the official evacuation of that city.
3. RESCUE AND RELIEF PROJECTS
(a) Relief to Jews in Rome
The American Jewish Joint Distribution Committee
representative in Portugal reports that 1,400,000 lire have
already been borrowed in Rome against the $20,000 credit
established in London for relief to Jewish refugees in
Rome. The recipient organization in Rome, Delasem, has
asked that the funds originally deposited in London be
credited in its name in the United States in dollars, along
with such additional funds as may be forthcoming from the
JDC on the basis of previous requests.
(b) Abandoned Children from France
Minister Harrison has advised us that despite repeated
informal representations on the part of the Swiss Government
Regraded Unclassified
317
- 6 -
to Vichy with respect to the release of abandoned children
facing deportation in France, Laval's decision was negative,
with no explanation being given. It was urged that no
publicity be given concerning Swiss intervention in this
matter or Vichy's refusal, for fear of halting further
efforts by the Swiss Government in this direction.
In a cable pending at State we are asking Minister
Harrison and Board Representative McClelland to request
that appropriate instructions be issued to the Swiss Le-
gation at Vichy with respect to a formal approach to
Laval on the matter. We are also requesting our Ministers
in Lisbon and Dublin to approach the Portuguese and Eire
Governments with requests for parallel action.
According to a report from the JDC representative in
Lisbon, during the past four or five weeks over 300 such
children from France have reached Switzerland clandestinely
and are being cared for by local groups.
(c) Evacuations to Italy and the Mediterranean Area
According to a report from the U. S. Legation in
Cairo, the British Foreign Office has instructed its Yugo-
slavian Embassy to approach Tito with a view to obtaining
his active aid in facilitating the escape of Jews from
Hungary through Partisan territory. Our great interest
in facilitating such escapes to Italy and the Mediterranean
area, has likewise been indicated in 8. cable to Cairo.
Our Legation there has been advised that arrangements
can be made for any assistance necessary, including finan-
cial, in order to enable these refugees to reach places of
safety.
(a) Rescue of Jews in Athens
We have learned that 400 Sephardic Jews, Spanish
nationals residing in Athens, have recently been imprisoned
in a concentration camp. As 8. result of intercession by
the Holy See, the Spanish Government has on several occasions
in the past been prevailed upon to recognize groups of
Sephardic Jews in Axis-held territory 8.8 Spanish nationals.
318
- 7 -
For this reason, we are cabling Harold Tittmann, U. S.
representative at the Vatican, asking him to approach Vati-
can officials so that the Papal Nuncio at Madrid may be
advised of this situation and his aid enlisted in obtaining
Spanish recognition, thereby forestalling deportation and
almost certain death.
(e) Evacuation of Refugees from Finland
Some time ago Minister Johnson reported from Stockholm
that Sweden had refused entry to 113 Jewish refugees who
had gone to Finland from central Europe in 1938 and 1939, des-
pite repeated requests on Johnson's part and despite the fact
that the Finnish Government itself had made application for
the admission of these refugees to Sweden. Johnson sub-
sequently prevailed upon the Swedish Government to re-
examine the case, in view of the danger of serious perse-
cution, not only to the Jewish refugees in question but to
local Jews and many non-Jewish refugees who would be
equally threatened as a result of increasing German influ-
ence in Finland. We have now guaranteed to make arrange-
ments for the evacuation from Sweden, as soon as practical,
of all threatened persons other than Swedes who may be
accorded refuge in Sweden, and for the maintenance while
in Sweden of such refugees who cannot claim the support of
their own governments. As B. result, Swedish visas have
now been authorized for 100 of the central European refugees
now in Finland "as a starter."
(f) Latin American Passports
Minister Harrison has communicated to us the details
of approaches made by the Vatican to various Latin Ameri-
can governments in an attempt to work out relief measures
and possible evacuation plans for Jews interned in Axis
territory who hold passports or papers issued by these
governments. Under the circumstances reported, our
efforts toward exchange arrangements become all the more
urgent. Accordingly, we are cabling Harrison to proceed
with all possible despatch in pressing Spain and Switzerland
to inform the German authorities that we are prepared to
consider as exchange material all internees in occupied
territory who hold Latin American passports. In this
Regraded Unclassified
319
- 8 -
connection we are asking Harrison to note that we are
advising Latin American countries that this Government does
not expect such countries physically to admit any of these
persons, but that arrangements will be made for refuge
elsewhere. We are also communicating with the Vatican and
requesting its support in our efforts on this basis.
In cables to Bolivia, Costa Rica, El Salvador, Guate-
mala, Haiti, Nicaragua, Paraguay and Peru on the projected
exchange, the substance of the report concerning Vatican
efforts is given along with the request that our Ambassa-
dors impress upon the officials concerned the fact that
failure to act will almost certainly spell death for the
persons involved.
Since certain individuals among the refugees interned
in France and Germany claim American citizenship, we are
asking that Switzerland, as the protecting power, be advised
that while such claims are under investigation and until
the Swiss Government is advised to the contrary, we expect
such refugees to be treated as U. S. citizens, with all the
rights, privileges, and immunities to which such citizens
are entitled.
(g) Joint Exchange Project
We have been urged by the World Jewish Congress to
make a special joint effort, with Great Britain, to arrange
still another exchange of Jews in German-occupied countries
against German nationals in Allied countries. The WJC
has indicated that the candidates for exchange which it
proposes are some 3500 Jews holding Palestine immigration
certificates and whose names have already been supplied by
the British Government, through Switzerland as the protecting
power, to the Government of Germany. Germany is said
to have accepted this principle of exchange, but the lack
of German candidates has prevented the exchange from material-
izing. The holders of these Palestine certificates are
now interned in special camps and are in increasing danger
of deportation as exchange arrangements are prolonged.
4. COOPERATION WITH THE INTERGOVERNMENTAL COMMITTEE
Discussions in Washington with Sir Herbert Emerson and
Patric Malin of the Intergovernmental Committee have now
Regraded Unclassified
320
- 9 -
been concluded, complete agreement having been reached
with regard to our respective fields of operation. Copies
of an exchange of memoranda between the IGC and the Board
are being sent to our representatives abroad, reinforcing
a mutual desire for the closest cooperation between our
respective staffs in attempts to alleviate the refugee
problem.
5. PRESS CONFERENCES
During the past week two press conferences were held. In
the first instance, Ira Hirschmann was interviewed on
accomplishments in Turkey. At the second meeting, Sir
Herbert Emerson and Patric Malin of the Intergovernmental
Committee were presented and discussion dealt with the
agreement reached between IGC and the Board.
Inside
Regraded Unclassified
321
CARLE TO AMBASSADOR MacVRAGH AND MINISTER KIRK, GAIBO, FROM STATE DEPARTMENT
Please refer to Department's circular airgram of January 26 in regard to
the establishment of the Var Befugee Board.
The Rescutive Director of the Board, John W. Pehle, has informed the
Department that in cenformity with the President's Order of January 22, the
Board proposes to appoint Mr. Charles 1. Joy, Acting Executive Director of the
Unitarian Service Committee, as the Special Representative of the Board with the
designation by the Department as Special Attache to both the Embassy and the
Legation on var refuges matters. The Presidential order provides that the State
Department shall appoint such Special Attaches on the recommendation of the Board,
that they shall have diplomatic status and that their duties and responsibilities
shall be defined by the Board in consultation with the State Department.
The Unitarian Service Committee has indicated that it has no objection to
Mr. Joy's accepting this appointment.
If, after considering the matter, this appointment meets with the approval
of both the Ambassador and the Minister, please advise us accordingly by
telegram in order that his designation say be made effective at once. It is
assumed that there will be no objection on the part of the Egyptian, Greek and
Yugoslav Governments to thisdesignation, although in their discretion the
Ambassador may approach informally the Greek and Tugeslav authorities and the
Minister the Egyptian auth orities if this is considered necessary or advisable.
If Joy is appointed we propose to advise his that:
(a) He is charged with the duty and responsibility of carrying out the
Board's policies and prggrams in Agypt.
(b) He ismeponsible to the Ambassador insofar as the Board's activities
involve relations with the Greek and Tugeslav Governments and to the
Minister insofar as the Board's activities involve relations with the
Egyptian Government.
(c) He should discuss his activities and problems regularly and fully
with the Ambaesador and Minister.
(a) The legation will provide him with the necessary communication
fasilities in carrying on his official duties.
Minister in carrying out instructions contained in the airgram referred
(a) Be should extend all possible assistance to both the Ambassador and
to above.
private agencies operating in Bypt in this field regardless of whether
(f) He should work with and give all possible assistance to public and
such organisations are American, foreign or international.
Regraded Unclassified
322
- 2 -
(g) He should develop and assist in the development of programs and
implementation of measures for the rescue, transportation, maintenance
and relief of refugees.
(h) He should forward to the Board recommendations and frequent reports
on progress of work and difficulties encountered,
(1) Insofar as the Trading with the enemy Act is concerned the
Secretary of the Treasury has vested in the War Refugee Board and its
representatives in the field full authority to communicate with enemy
territory to carry out the purposes of the Order. The Secretary of the
Treasury has also delegated to the War Refugee Board and its representa-
tives the power to authorize any public or private agencies who may be
subject to the provisions of our Trading with the enemy Act to
communicate with enemy territory for the purpose of carrying out the
Order. Joy is authorised to act accordingly upon confirmation of his
designation by the Ambassador and Minister.
After receipt of confirmation of Joy's designation further detailed
instructions will follow from time to time.
April 27, 1944
11:50 A.M.
JBF:bbk- 4/26/44
cot VS
Regraded Unclassified
323
TELEGRAM SENT
EOG
This telegram must be
April 27, 1944
paraphrased before being
communicated to myone
midnight
other than a Government
agency. (BR)
AMERDASST,
LONDON.
3399
FOR THE AMBASSADOR FROM THE WAR REFUGEE BOARD
Kindly transmit a paraphrase of the following
message to Dr. Ignacy Schwarsbart, 45 Queens Court,
London, W28
QUOTE The War Refugee Board is giving the closest
attention to the problem of the internees in Belsen-
Bergen, Vittel, Titmoning. Compiegne and Liebenau,
The missions of the United States Government in Spain
and Switzerland have been instructed to request the
Governments of Spain and Switserland to advise the
German authorities that the United States Governmen
is giving active consideration to the treatment as
exchange mterial of all internees in pessession of
Latin American passports. The cooperation of Latin
American countries in this matter has also been
sought. Nahum Goldmann, New York, World Jewish
Congress. UNQUOTE.
HULL
(GLW)
S/CR
MRB:GLW1KG BC ARA VE SMP
Regraded Unclassified
324
AIRGRAM
CONFIDENTIAL
FROM:
Tegucigalpa, Honduras.
No. A-165
Dated: April 27, 1944, 3p.m.
Rec'd: May 3 11 &.
SECSTATE
WASHINGTON
A-165, April 27, 3 p.m.
My A-163 of April 25, 5:30 p.m. concerning refugee children
under sixteen years of age.
The Minister for Foreign Affairs informed me yesterday that
President Carias appears willing for Honduras to receive a maximum
of fifty (50) children, and that information as to the sex and age
preferred may be supplied later. I gathered that some preference
as to racial origin (which may possibly mean that Polish, French,
or some other class of children would be more acceptable than Jews)
might also be expressed. Acceptance of refugee children would be on
the condition that all expenses of transportation and of maintenance
by net by other than Handuran agencies.
Since Honduras has no diplomatic or consular representatives
in Switserland at the present time, perhaps the Department can suggest
some practicable form of visa procedure.
Clarification on the following point would be helpful: are the
children expected to remain in Honduras the rest of their lives, or
would they be returned to their countries of origin after termination
of the present war?
FAWST
711 so
JBFtMc
Transmitted via courier pouch closing 1130 p.m., April 28, 1944.
Regraded Unclassified
325
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
AMBONSUL, Jerusalem,
DATED:
April 27, 1944
NUMBER: 90
CONFIDENTIAL
FROM WAR REFUGEE BOARD FOR CONSUL GENERAL
Please deliver the fellowing mug from War
Refuges Board to Rabbi Joseph Mishkowski, Meker Chaim,
Jeruslant
QUOTE Necessary you immediately send influential
outstanding delegate to Istanbul to coops rate with
Griffel. Remitted 25,000 dellars under license 617451-R
to Jacob Griffel, Hotel Continental, Beyoglu for
reseus. Sterabuch also remitted to him 25,000 francs.
Sterabuck cables urgency procuring unlimited number
of veteran certificates for Rabbis and religious
leaders in grave danger in Hungary and Lithuania.
Sternbuch reports these certificates useful for
internment privileges in occupied territories and for
possibilities of exchange. Necessary you inform
American Consulate names of your Vasd Hatsalah Committee
md your activities to enable consulate to 2nd you
every support possible. Band Hatsalah Emergency
Committee, Rabbis Resenberg, Silver, Levinson,
Kotler, Kalmanovits UNQUOTE
HULL
Regraded Unclassified
326
Mexico, D.F., April 27, 1944.
No. 17,235
Subject: Activities of the War Refugee Board and the Possi-
bilities of Collaboration with it by the Mexican
Government.
The Honorable
The Secretary of State,
Washington, D. C.
Sir:
I have the honor to refer to the Department's circular
airgram of January 26, 7 p.m., informing this Embassy that the
President had instructed the Secretaries of State, Treasury, and
War to take action for the immediate rescue and relief of the
Jews of Europe and other victims of enemy persecution. This En-
bassy has taken careful note of the Department's instruction. I
have to refer to this Embassy's despatch No. 15,781, of February
8, 1944, in which we made a preliminary acknowledgment of the De-
partment's instruction, as well as a preliminary report. I also
have to refer to my despatch No. 16,011, of February 18, 1944, to
the effect that the Department's instruction was discussed by
the Embassy with the Foreign Office here. It will be recalled
from this despatch that the Foreign Office informed this Embassy
that, while Mexico is entirely in sympathy with the proposed ao-
tivities of the War Refugee Board, it nevertheless cannot take
any activity toward the transportation of refugees to this con-
tinent, as it has no transportation facilities available for this
purpose nor can it assume any responsibility for the maintenance
and care of such refugees in Mexico. The Foreign Office informed
the Embassy that it is well known that Mexico is affording hos-
pitality to large groups of Spanish refugees, as well as to large
numbers of other refugees from Europe, many of them of the Jewish
faith, in addition to cooperating in the settlement in Leon,
Guanejuato, of approximately 1500 Polish refugees for the dura-
tion of the war.
Regraded Unclassified
327
- 2 -
This Embassy received in due course the Department's cir-
cular airgram of February 29, 7:30 p.m., instructing me to explore
with the appropriate officials of the Forieng Office the possi-
bility of Mexico's collaborating with the War Refugee Board
through the issumance by the Mexican Government of a declaration
of policy similar to that made by the President of the United
States and by the issuance by the Foreign Office of instructions
to its representatives in other countries comparable to the in-
structions contained in the Department's telegram of January 25.
In accord with this instruction, there was left with the
Foreign Office a memorandum, No. 2461, of which a copy is trans-
mitted herewith, on March 24, 1944, and the full purpose of the
War Refugee Board and the policy of our government as expressed
by President Roosevelt again set forth to the Foreign Office. We
have had no further reaction of an official character from the
Mexican Government beyond that already set forth in my despatch
No. 16,011, of February 18, 1944.
In the meantime, this Embassy has received the Depart-
ment's confidential circular airgram of April 15, 7 p.m.,
referring further to its circular airgram of January 26, 7 p.m.,
and to subsequent communications, and informing this Embassy
that the Department has now authorized the consular officers in
Switserland to issue up to 4000 quota immigration visas to refu-
goe children up to 16 years of age without regard to religion,
nationality or stateless status. The Department states that the
purpose of this authorisation is to facilitate the escape to
Switserland of orphaned or abandoned children by giving assur-
ances to the Swies Government that these children will not re-
main in Switzerland after the termination of hostilities in Europe.
The Department instructs - to approach the appropriate officials
of the Mexican Government in order to inform that government of
our action as set forth in our airgram under reference, and to
request the Mexican Government to give assurance to the Swiss Gov-
ernment of its acceptance up to a fixed number of refugee child-
ren in a manner similar to that of our own government.
In this Embassy's Airgram No. A-1348, of April 26, 11 a.m.,
I informed the Department that, although the attitude of the
Mexican Government with respect to the reception of refugees has
been fairly liberal, it is my opinion that the Mexican Government
is not particularly interested in receiving any considerable num-
ber of refugees from Europe either during or after the war. I
stated that I had gathered the impression through confidential
conversations from time to time with high officials of the Mexi-
can Government when I have discreetly explored this situation,
Regraded Unclassified
328
- 3 -
that this is the attitude of the Mexican Government. I there-
fore stated in my airgram that the probabilities were that the
Mexican Government would not be willing to commit itself. I also
stated that in order to secure anything like a favorable recep-
tion, it would be necessary to prepare the ground carefully in
the Mexican Government and among the highest officials, and that
I was taking the appropriate steps to this end.
I an sure it is not necessary for no to inform the Depart-
ment of my deep interest in this refugee problem. The Department
is aware that the circumstances of my service, both in the field
and in the Department of State, have brought me in close contact
with this problem. The Department is aware that from the very be-
ginning of the Nasi regime when the persecution of Jews and
others began on such a vast scale, I took a very determined stand
with regard to such discriminations and persecutions and have
constantly in my official capacity, done everything I could to
further the steps taken by our government and other governments
to alleviate the situation in which 80 many unfortunates found
themselves. The Department will appreciate therefore that I
view the initiative of the President as expressed in his execu-
tive order setting up the War Refugee Board with complete under-
standing and sympathy, and that I wish in my official and personal
capacity to be as helpful in carrying through the objectives of
the Board and of our government as may be possible.
As will have been apparent to the Department, however,
from By despatches No. 15,781, of February 8; and 16,011, of
February 14, only very limited collaboration can be expected from
the Mexican Government in the refugee problem. Because of my
deep interest in the refugee problem in general, I have not failed,
during the more than two years that I have been in Mexico, to
study the possibilities of Mexico's receiving refugees from Europe
during and after the war. I have been in close touch not only
with our official, but with our private organizations in the
United States which are endeavoring to aid refugees. I have been
in close touch with the problem of endeavoring to find places
where such refugees may go and to this end I have not failed
during the past two years to explore this situation in Mexico
and I have regretfully had to come to the conclusion that Mexico
is not likely to offer facilities of refuge for any considerable
number of refugees during or after the war.
Mexico has & fairly homogeneous population and up to the
present time there has been no evidence of recial discrimination.
The Mexican Government has indicated consistently that it desires
Regraded Unclassified
329
Regraded Unclassified
- 4 -
this situation to continue. Although it has maintained a rather
liberal attitude with respect to certain types of refugees, it
has been receptive more particularly to refugees of Spanish ori-
gin. The Department is aware that from the beginnings of the
Spanish Civil War, Mexico opened her doors very freely to refugees
from Spain of all types of political opinion. She received refu-
gees of the extreme Right and of the extreme Left. She received
these refugees in very considerable number and placed practically
no limitation upon those endeavoring to enter Mexico. She re-
ceived practically all who desired to enter Mexico and who could
find facilities for leaving Spain or who could secure shipping
accomodations.
Mexico also received & certain number of refugees from
other countries of Europe, including many Jews, and she made no
discrimination with respect to race or religion among the refu-
goes she received from other countries. Mexico, however, did
exercise the same measure of prudence exercised by us in the is-
suance of visas to refugees and admitted only those physically
fit and who had no criminal or other unfavorable record. The
number of refugees from countries other than Spain, however, was
kept within the very definite limits that set by the issu-
ance of visas of Mexican consular diplomatic officials.
The whole record in recent years has shown that Mexico
was more particularly interested in receiving refugees from
Spain than from other countries of Europe.
More recently, the restrictions on Mexican diplomatic and
consular officers have been so strict with respect to the issu-
ance of visas that she has been receiving practically no refugees
from any other country of Europe. The reason for this change of
policy, even with respect to Spain, has been that the experience
of the Mexican Government with a not inconsiderable part of these
refugees has not been too satisfactory. So far as the Spanish
refugees are concerned, they have in many respects shown them-
selves more adaptable to conditions in this country and have in
many ways been able to incorporate themselves into the life of
the country. Many of these refugees have been able to incorpor-
ate themselves into the business, professional, and working
class of the country. Others, however, have made very little
effort to incorperate themselves into the life of the country
and have carried on political discussion and polemic within the
country which from time to time has become a source of embarrass-
ment and even concern to the Mexican Government. In a number of
330
- 5 -
cases various groups of Spanish refugees have brought a good deal
of pressure on the Mexican Government, to the point of embarrass-
ment.
Unfortunately, some of the refugees from other countries
of Europe than Spain have not, through their conduct, favorably
influenced the attitude of the Mexican public and the Mexican
Government towards refugees in general. A good many of the refu-
goos from countries other than Spain came with fair amounts of
money and they have, in a measure, instead of starting new in-
dustries or new businesses, acquired an interest in or control
of businesses already established in Mexico and in Mexican in-
dustry. I will revert to this a little later, but there is no doubt
that the attitude of some of the refugees in Mexico has unfavor-
ably influenced the Mexican public and this is reflected in the
Mexican Government.
The Department is aware that the Mexican Government has
been exercising a very strict control in general over the admis-
sion of aliens, especially if they come to work. The Department
is aware that American citizens entering Mexico for the purpose
of engaging in any gainful occupation, whether it be professional,
business, or otherwise, must secure special authorization, and
that this is granted with difficulty. In fact, the attitude of
the Mexican Government in this respect is far from liberal and
this applies to aliens of any nationality and without respect to
race, religion, or political opinion.
with specific reference to Jewish immigration, it may be
said that there is at present no discrimination against Jews in
Mexico, although there is a fair number in the capital and in
other industrial centers. The Jews who have come to Mexico in
the last 20 years have engaged almost entirely in business and
have remained in the urban centers. Some of them have become
very wealthy and a few of them very powerful. Some of these
have not used either their wealth or their power with complete
understanding. It may be said, however, that up to this time
there is no discrimination against Jews and it has been my obser-
vation that the Mexican Government does everything in its power
to avoid any such problem arising. My own observation would lead
me to the opinion that the Jews in Mexico, who are for the most
part in comfortable circumstances, are not particularly anxious
that there should be any considerable Jewish immigration accept-
ed by the Mexican Government, for they fear that it would lead to
an unfavorable attitude towards Jews in general already in the
country.
Regraded Unclassified
331
- 6 -
I have given the Department this background as it is neces-
sary I believe to an understanding of the attitude of the
Mexican Government. In addition to this, the Mexican Government
does not believe that it is in need of any considerable immigra-
tion. The country has.a population of 20,000,000, of which the
overwhelming number live on a very low standard. The primary
purpose of the Mexican Government is to improve and develop in-
dustry and to increase agricultural production. It believes that
to do this it has adequate population and that its first obliga-
tion is to endeavor to provide a higher standard of living and
more adequate employment for its present indigenous population.
The attitude towards the reception of persons especially quali-
fied for technical operation is likely to be liberalized, for
such persons will be needed in the industrial and agricultural
development of the country.
I have hesitated to take up with the Mexican Government
directly, myself, the Department's confidential circular airgram
of April 15 with regard to the granting of visas by Mexican dip-
lomatic and consular officers in Switzerland to refuges children
because I fear that the answer will be negative if the approach
is made in this way at this time. I think there is a possibil-
ity that 80 far as refugee children are concerned under 16 years
of age, it may be possible to get some degree of receptivity by
the Mexican Government, although there are no organisations of
any kind in Mexico which would be prepared to undertake the dis-
tribution and the care of these children within the country. Or-
ganisations such as we have in the United States and in some
other countries which can handle a problem of this kind do not
exist here. The fiscal problems which the Mexican Government
already has to face and which it will increasingly have to face
through the decrease in revenue which is certain to come with the
end of the war will make it reluctant to accept any refugees.
Nevertheless, in order to explore this matter before mak-
ing any informal approach, I had an informal and confidential
and off-the-record conversation with the Minister of Fereign Re-
lations, Dr. Padilla a few days ago, In this conversation I
raised the question of the President's executive order and the
formation of the War Refugee Board, and the hope of our govern-
ment for the collaboration of other governments in this import-
ant humanitarian work. The Minister immediately referred to By
memorandum No. 2461, of March 24 (copy enclosed) which he said
he had given careful consideration and had discussed with the
President. The Minister said that I was aware of the high humani-
tarian motives and actuation of the President of Mexico. The
President and the Government of Mexico and he were aware of the
Regraded Unclassified
332
- 7 -
high humanitarian motives and actuation of President Roosevelt
and of our government. He was sure that from the many conversa-
tions which I had had with him on similar matters, I had no
doubt concerning his own understanding of these refugee problems
and of his own desire to help as far as possible. He said that
our memorandum, however, had raised a very real problem for the
Mexican Government and he had not failed to discuss the matter
fully with the President. He said that the Mexican Government,
while it hoped to maintain its traditional policy of receptivity
to immigrants and to those subject to political preocoupation
and to refugees in general, was not in a position for the present
to receive any further refugees. He called attention to the
large number of Spanish refugees they had received during the
Spanish Civil War and the problems which had been raised through
the presence of some of these refugees in Mexico who, because of
their racial affinity, should be easily assimilated. He called
attention to the considerable number of refugees from other coun-
tries of Europe who had entered Mexico and he said that for the
present the Mexican Government would net be in a position to make
such a declaration as it had been invited to make, nor could it
give any assurances that it was a position to receive any
immigrants for the present or for, the immediately foreseeable
future. He indicated that any request for admission by any
specific group of refugees from any country would have to be
refused as the Mexican Government was not in a position, for
reasons which my presence in the country must have made clear
to no, to receive any for the present. The Minister said that
he wished to make it clear that they were not closing their doors,
but that the Mexican Government must adhere for the present to
its policy of receiving only a very limited number of people
and those always on the basis of specific instructions issued to
their diplomatic and consular officers stationed abroad.
I could see that the Minister was very anxious to col-
laborate with us but that he was unable to say that his govern-
ment could for the present do 80. I could see that he was
regretful because in every matter on which we have approached
him for collaboration in the inter-American and in the wider
world picture, the Government of Mexico has been collaborative
to an unusual degree. It was quite clear, however, that so far
as refugees are concerned, the Mexican Government is not in a
position to collaborate for the present and for this reason I
do not believe that it would be advisable for the War Refugee
Board or for us in any way to urge any measures on the Mexi-
can Government. I do not believe that any such efforts on our
part or of the War Refugee Board would have any usefulness and
I fear that they might have an unfavorable effect.
Regraded Unclassified
333
- 8 -
So far as the question raised in the Department's confi-
dential circular airgram of April 15 is concerned, affecting
children under 16 years of age, I have made no formal approach
to the Mexican Government on this matter as I an confident from
my knowledge of the situation here and from the remarks of the
Minister of Foreign Relations and from the observations of the
other officers of the Ministry, that the answer would be nega-
tive. I shall, however, endeavor in informal conversations with
the Minister, to pursue this question of the objectives of the
Refugee Board further and at my first opportunity I shall raise
this question of refugee children.
I have written this long report on this matter to the De-
partment as I believe the matter is of sufficient importance to
warrant this full background and I have wanted it to be clear that
if there is no response 80 far as Mexico is concerned, to the
activities of the War Refugee Board, it is not because this Em-
bassy has not foreseen the problem which has arisen and with
which the Board wishes to deal, for during the past few years, I
have endeavored in such ways as I properly and discreetly could,
to develop a favorable attitude toward the reception of refugees.
Respectfully yours,
G. s. Messersmith
File 848-War Refugee Board
GSM/aw
To the Department in Original and 4 copies.
Enclosure:
Copy of Memorandum No. 2461 of March
24, 1944.
Regraded Unclassified
334
Regraded Unclassified
COPY
No. 2461
MEMORANDUM
It will be recalled that on February 11, there was left
with the Oficial Mayor of the Ministry a personal memorandum
respecting the establishment, on January 22, 1944, by an excou-
tive order of the President of the United States, of a so-called
War Refugee Board to take immediate action for the rescue and
relief of the Jews of Europe and other victims of enemy persecu-
tion.
The establishment of this board represents the determina-
tion of the Government of the United States effectively to carry
out without delay the policy to take all possible measures for
the speedy rescue and relief of the refugees in Europe. It is
felt certain that this effort will not be unilateral, and it is
desired to make clear that it continues to be the policy of the
Government of the United States to encourage and participate in
effective cooperative efforts with other governments. The board,
of course, will cooperate with all interested international organisa-
tions.
While clarifying the position of the Government of the
United States with respect to this entire problem, it is desired
at the same time to express the hope for cooperative action upon
the part of the Government of Mexico. It is thought that the ac-
tion taken by the Government of the United States could be help-
fully implemented through the issuance by the Government of Mexi-
co of a declaration of policy similar to that made by the Presi-
dent of the United States.
Mexico, D.F., March 24, 1944.
335
4-327
SECRET BY COURIER
10:45 A.M.
SENT BY SECRET AIRGRAM
AMERBASST,
LIMA (PERU)
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE AMBASSADOR.
Befer to your A=357 of April 10, and to Department's circular
airgram of March 31, 1:05 Pollo, of April 11, 11 and of April 22,
7130 p.m.
The Department has now been apprised that Papal Nuncio at Bern
informed Minister Harrison that Vatican had attempted to work out
relief measures for Jaws holding Peruvian documents and interned by
Germany. Apparently, the question of eventual issignation as result
of possible exhange vas raised in addition to the question of recognie
tion of dicuments. Pera is reported to have replied that it could not
(repeat not) recognise the passports in question, presumably because
it vas not (repeat not) prepared to prait persons in question actually
to enter Peru.
At the time this reply is reported to have been given to Vatican,
the assurance cantained in our circular airgram of April 11 had ori-
dently not (repeat not) yet reached Peruvian Government.
Please verify information received from Bera and reiterate this
Government's assurance that, in the event of exchange, Peru will not
(repeat not) be expected to grant physical admission to any of the
persons concerned even on a temporary or tentative basis.
In the light of these assurances, please impress upon the Peruvian
Government the extreme urgency with which this Government views the
necessity of acting favorably without delay on proposale previously
submitted and detailed in the airgrams under reference. 48 individuals
were already lost due to adverse action by Pera. More sympathetic
consideration premised to you accerding to your A=357, though much
appreciated by this Government, will not (repeat not) save the remainder.
You should impress upon Peruvian officials that since failure to take
prompt and affirmative action would almost certianly spell death for
the persons involved, and that since no (repeat no) responsibilities
or obligations would result for Peru from acquiesence in our requests,
we would be serely disappointed if Peruvian authorities should not
(repeat not) whole=haartedly cooperate with our efforts HULL to save these
people.
HULL
GLW
WEB:OLV:KG
ARA
SWP
4/27/44
Regraded Unclassified
336
CABLE TO NORVES, LISBON, FOR DEATER
Regraded Unclassified
Reference your no. 1168, April 19, and no. 1183, April 20.
Following measage is for Dexter from Pehlet
"In connection with proposals of Veisemen concerning rescue
of hidden children from France through Spain to Portgal, you are
requested immediately to contact Dr. Joseph Schwarts of the
American Jewish Joint Distribution Committee who, as you know,
is extremely competent and experienced in this field. You
should take advantage of his knowledge and background in this
particular program, Schwarts is already operating such a res-
our program under appropriate Treasury license, text of which
was cabled to Ambassador Norweb. permitting the necessary
communication with persons in enemy territory as well as the
necessary financial transactions, It should be noted that aside
from its wide expérience in this type of operation and adequate
personnel the American Jewish Joint Distribution Committee has
substantial funds available and has shown its willingness to
cooperate wholeheartedly on all our rescue programs.
"It is appreciated that the problem of working with the
various private organizations in Portugal cannot be resolved
from this end. While it is, of course, our policy to work in
harmony with all organisations, the Board feels that the program to
resous children from France would be greatly endangered if two
organisations without coordination through you should be trying
to rescue the same children with the possibility that fewer lives
are served. Since our main goal is to rescue the maximum number
of dilliren in the shortest possible time, ve feel you
should use your best judgment in utilizing all agencies in
those ways that will best achieve our aim,
"the problem of where to and the children who are actually
resoued should, of course, be determined after they have been
saved and depends upon existing facilities at that time."
THIS IS WB CABLE TO LISBON NO. 8.
April 27, 1944
3:00 P.M.
FHilab 4/27/44
337
Lisbon
Dated April 27, 1944
NCB-641
Rec'd 9:52 a.m,
This telegram must be
paraphrased before being
communicated to anyone
other than a Governmental
agency. (sc-00)
Secretary of State
Washington,
1268, April 27, noon,
VRB 7.
Following message is from Philip Conard for War
Refugee Board and American Friends Service Committee
Philadelphias
*On advice Embassy suggest you discuss timing
Portuguese feeding project French children with War
Refugee Board. Embassy has pending plans for refugee
childrens admission here with which French project
may interfere,"
NORWEB
use
Regraded Unclassified
SECRET BY COURIER
338
A-144
10:45 A.M.
SENT BY SECRET AIRGRAM
AMERICASSY
PORT-au-PRINCE (HAITI)
FOR THE PERSONAL AND CONFIRMNTIAL INFORMATION OF THE AMBASSADOR.
Refer to your A-205 of April 12 and to Department's circular
airgrams of March 31, 1105 p.m., of April 11, 11:00 a.m. and of
April 22, 7:30 P.M. The Department had prior to receipt of Embassy's
A-214 April 18, been apprixed that Papal Nuncio at Bern informed
Minister Harrison that Vatican had attested to work out relief measures
for Jews holding Haitian documents and interned by Germany. Apparently,
the question of eventual immigration as result of possible exchange was
raised in addition to the question of recognition of documents. Haiti
is reported to have replied that it could take no (repeat no) action,
presumably because it was not (repeat not) prepared tp permit persons
in question actually to enter Haiti.
At the time this reply is reported to have been given to Vatican,
the assurance cont&aned in our circular airgram of April 11 had evin
dently not (repeat not) yet reached Eaitian government.
Please verify information received from Bern and reiterate this
Government's assurance that, in the event of exchange, Haiti will not
(repeat not) be expected to grant physical admission to any of the
persons concerned even on a temporary or tentative basis.
In the light of these assurances, please impress upon the
Haitian Government the extreme urgency with which this Government
views the necessity of acting favorably without delay on preposals
previously submitted and detailed in the airgrams under reference.
While appreciative of the sympathétic consideration premised to you
by Fortign Minister according to your A-205 and your 4-214, this
Government believes that only prompt specific action along the lines
suggested in our circular airgrams can save the people concerned.
You should therefore impress upon Haitian officials that since failure
to act would sinost certainly spell death for the persons involved,
and that since no (repeat no) responsibilities or obligations would
result for Haiti from acquiescence in our requests, we would be sorely
disappointed if Haitian authorities should not (repeat not) whole-
heartedly cooperate with our efforts to save these people.
HULL
HULL
GLW
WHB:GLW:KG
ARA
4/27/44
Regraded Unclassified
ORIGINAL TEXT OF TELEGRAM SENT
339
FROM:
Secretary of State, Washington,
TO:
AMBMBASST, MADRID,
DATED:
April 27. 1944
SECRET
NUMBER: 1181
CARLE TO ANRASSADOR HATES AT MADRID
Befer to Department's 992 of April 10, and 1397
of April 21. The Department has new been apprised that
the Papel Nuncie at Bera informed Minister Harrisea
that Vatican had attempted to work out relief measures
for Jews interned by Bermany and holding Latin American
decuments. Apparently the question of eventual immigration
to respective countries as result of possible exchange
was raised in addition to the question of recognition
of documentation. Presumably. this explains negative
results of Vatican's efforts.
The Vatioan did net (repeat not) give any assurances
that in no (repeat no) event would the Latin American
countries be expected physically to admit the persons
cencerned. In our despatches to our missions in Latin
America, referred to in our 993 of April 10, we gave
this assurances met emphatically and undertock to
arrange for refuge elsewhere. We hope therefore to
obtain Latin American consent to recognition and exchange.
The Department is communicating with Vatioan
also suggesting cooperation on the basis of our
assurances to Latin Americans.
The above 10 for your information and to facilitate
your efforts to carry out objectives outlined in our 992
of April 10.
It was further stated by Nuncie at Bera that
Funcie at Madrid had been requested to ask the
Spanish Government to inform Spanish Imbassador at
Borlin of gravity of peril of Polish Jews with
Paraguayan documents and to insist that he urgently
give then effective protection.
Please make similar representations on behalf
of Jews and others with Paraguayan or any other Latin
American documents, acting jointly with Papal Nuncio
or ea your own if , int action net (repeat not)
immediately forthcoming.
Your attention is again drawn to urgency of the
issue and to necessity that Department be promptly
informed of the progress which you are making.
HULL
Regraded Unclassified
340
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
AMLEGATION, Bern,
DATED:
April 27% 1944
NUMBER: 1456
CONFIDENTIAL
FROM MAR RETUGEE BOARD TO HARRISON
Please deliver the following message to Adolph
Fraudenberg, 41 Avenue de Champel, Genera, from
Leland Rex Robinson and Henry Lieper of the American
Committee for Christian Refugees:
"Total remittances $24,000 sent April 13 and 21
representing payments through June. Cable if any
unblocking delays also explanation unblocked $15,000
credit mentioned April 2 cable. No further remit-
tances promised until July but expect continue $8,000
monthly thereafter also making effort obtain some
additional assistance meeting French budget. Accepting
your judgment best disposition funds specifically
approving budget cabled December 10 subject our ability
remit adequate funds. Happy your cable April 24
confirms construction project."
THIS IS WRB BEEN CABLE NO. 9
HULL
Regraded Unclassified
341
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
AMLEGATION, Born
DATED:
April 27, 1944
NUMBER: 1459
SECRET
FOR THE ATTENTION OF THE MINISTER AND McCLELLAND.
First paragraph of your telegram of April 12, 1944,
no. 2315, is referred to herewith.
We desire clarification as to whether the Swiss
Government's second approach to Lavalle will consist
of fermal requests for children or request that the children
be allowed to go to Switserland temporarily. In view of
the non-objection of Pilet Gelas, the War Refugee Beard
is planning to request Bire and Portuguese Governments for
paralled action and the above information is needed. The
Swise Government's preposed second approach obviously is
within the framework of the original Intergovernmental
Committee request for such action and therefore this Govern-
ment desires it.
The War Refuges Board will whecome any additional
suggestions you may have for expediting immigration from
France of orphaned and abandoned children subject to enemy
persecution.
For your information censular officers in Spain
and Portugal have received instructions similar to
those transmitted in the Department's no. 891 for
issuance of 1,000 immigration visas. Governments of
Canada
Regraded Unclassified
342
- 2 -
Canada and Australia and apprepriate other American
Republics are being approached with the suggestion
that they make similar effers to Swies Government
regarding children.
FOREGOING IS WRB BERN CABLE NO. 5.
HULL
Regraded Unclassified
343
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington,
TO:
AMLEGATION, Bern
DATED:
April 27, 1944
NUMBER: 1460
CONFIDENTIAL
FROM WAR REFUGE BOARD TO HARRISON
Please deliver the following message from
Edward Cahill of the Unitarian Service Committee to
Noel Field, 12 Rue de Vieux College. Genevas
"On recommendation Toscanini urge you
contact Mrs. Wally Piercy Silvahof, Berne"
THIS IS WRB BERN CABLE NO. 8
HULL
Regraded Unclassified
344
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington,
TO:
AMLEGATION, Bern,
DATED:
April 27, 1944.
NUMBER: 1461.
CONFIDENTIAL
FROM WAR REFUGE BOARD TO HARRISON
Please deliver the fellowing nessage to
Rene Berthelet, Vaserstrasse 14, Zurich, from
Frank Kingdom of the International Rescue and
Relief Committee:
"Sending you $10,000 on License W-2138
accerding details communicated to you by American
Legation, Bern. Report back immediately through
Legation on activities and whether you have diffi-
culties financial or otherwise."
THIS IS WEB BERN CABLE NO. 7
HULL
Regraded Unclassified
345
Regraded Unclassified
ENCE-648
Bern
This telegram must be
paraphrased before being
Dated April 27, 1944
communicated to anyone
other than a Government
Rec'd 10:08 a.m.
Agency.
(BR)
Secretary of State,
Washington.
2677, April 27, 8 M.M.
Reliable sources state that the German authorities
have been greatly diseatified with the Administration
during the past six months of the anti-Jevish lave in
Neo-Fascist Italy and have insisted with the Musselini
regise that the chaos in the Italian racial laws be
replaced by an ordered system on the Nuernberg model and
that Jewish problems in the future be handled in the
approved Nasi manner. Source adds that the basis for
darrying out this German order was provided at request
for Neo-Fascist Cabinet meeting April 18 when a decree
was issued establishing a "general office for racial
problems" and Mussolini appointed Gievanni Presiosi as
chief thereef. Presiosi pieneer of Italian recialism
and a Neo-Fascist State Secretary has been active in the
anti-Semitic and anti-Communist program of the Musselini
Government. He is now expected to raise the anti-Jewish
campaign in Italy to the same level of intensity as the
German imspired campaigns in Hungary, Slovakia and other
satellite countries.
HARRISON
RR
346
ORIGINAL TEXT OF TELEGRAM SENT
FROM: Secretary of State, Washington,
TO: AMEMBASST, Ankara,
DATED: April 27, 1944
NUMBER: 377
SECRET
FROM WAR REFUGEE BOARD TO AMBASSADOR STEINHARDT,
AMKARA, TURKEY.
This is WRB Cable to Ankara No. 31.
Please refer to your No. 725 of April 22 with
respect to safe conduct for 88 TARI. Your action is
approved. However, for your information, the
Joint Distribution Committee here has advised us that
Barlas of Jewish agency can probably arrange for
coastal schooners to convey refugees from Iskenderun
to Haifa if voyage of TARI to terminate at
Iskenderun. Accordingly it is suggested that you take
this matter up at once with Barlas in order to see if
he can arrange tramportation of refugees from Iskenderum
to Haifa, If this can be done it may be advisable to
arrange with Turks and Intercross to change route of
88 TARI in order that German safe conduct may be
obtained promptly.
HULL
Regraded Unclassified
347
CARLE TO AMBASSADOR HARRIMAN, NOSCOW
The War Refugee Board requests that you deliver the
following message to Samuel Chobrutsky, Moscow Jewish Community,
@pasoglinistchevsky H, Moscow, U.S.S.R.:
QUOTE Our Vaad Hahatsala Mmergency Committee Relief
and Rescue Agency comprising Rabbinical and other Orthodox
organisations interested in obtaining information regarding
position of Jews, particularly of Jewish religious leaders
and scholars, in territories freed by Russian Army with view
to sending relief, if needed, We suggest you as head of
Jewish community in Moscow present matter to your Government
and request information regarding situation, need of and
possibilities for giving relief. If plan feasible advisable
invite several Rabbis join project. Inform us if you have
complete list Rabbis and Teshiva scholars. Advise us giving
details by message to Var Refugee Board, Washington, through
American Robassy, Mossow, or through Soviet channels. Vaad
Hahatzala Emergency Committee Rabbis Rosemberg, Silver,
Levinson, Kotler, Kalmanovits, Grosowski UNQUOTE
April 27, 1944
12:40 P.M.
BAksintjp 4/25/44
LSL
Regraded Unclassified
348
APR 27 1944
Dear Averills
The achievement of substantial agreement between the
Russian and American technical experts on the basic prin-
ciples for an International Menetary Fund is very gratify-
1ng. Year efferts in furthering this end have been most
valuable and I wish to express my thanks for your help on
this matter.
As you inco, I appeared on Friday before the Congres-
sienal committees, where it was my impression that things
proceeded favorably. Many of the press comments have also
been very enecuraging. The participation of the U.S.S.R.
contributed greatly to the effectiveness of the -
mest of the basic principles and has been given considerable
premisence in the newspapers.
We are at present continuing discussions with the Seviet
experts of the points raised by Mr. Meletov in his statement
transmitted in your 1380 of April 20.
Sincerely yours,
(Signed) II. Mergenthau, Dr.
The Henerable Averill Marrinan,
American Ambassader,
Meason, U.S.S.R.
DFR:sh
4/26/44
Regraded Unclassified
349
LEST
This telegram must ,0
paraphrased ocfore .011.E
Aprll 27, 1944
communicated to anyone
THE is U amment
7 p.m.
a
(
STATE
US URGENT
DIVISION OF
AUTHORISM,
1211
IROSCOR.
COMMUNICATIONS
1052
FOR THE AMBASSADOR
The Secretary of the Treasury has requested that I
transmit the following cable to you.
QUOTE Refer to our cable no. 1614, April 25. We must
have n definite response to the following questions
Will the U.S.S.R. Government send a delegation to a
monetary conference at the and of May if the Presi-
dent issues the invitation? This matter 18 now
before the President and we expect to call you on
the telephone Saturday morning with the hope of
receiving a "yes" or "no" answer to this question.
WID 7025.
HULL
(ECC)
MA:EGC:ja
4/27/44
Regraded Unclassified
350
TELEGRAL SENT
any
April 27, 1004
This telegram must bE
Y.SEd before being
8 a.m.
ted to anyone
tion & Government
Agency. (BR)
US UNGENT
DEPARTMENT OF STATE
AMERIBASSY,
APR 78 1948
LONDON.
COMMUNICATIONS OF
3390
FOR THE MMBASSADOR
The Secretary of the Treasury has requested that I
transmit the following cable to you.
QUOTE Refer to our cable no. 3283, April 25. We must
have & definite response to the following questions
Will the British Government send FL delegation to a
monetary conference at the end of May if the Presi-
dent issues the invitation? This matter is now
before the President and wo expect to call you on
the telephone Saturday morning with the hope of
receiving a "yes" or "no" answer to this question.
END QUOTE
HULL
(EGC)
FIAA :LGC ja
4/27/44
Regraded Unclassified
351
oT IJ SE RE-TRA ITTED
COPY no.
11
SECRET
OPTEL Not 135
Information received up to 10 a.m., 27th April, 1944.
1. NAVAL
Early 26th Carrier borne aircraft of Home Fleet
attacked shipping off SODO, NORTH NORWAY. All four ships of
southbound convoy and one escort damaged. llo air opposition.
5 aircraft missing.
On 24th/25th Coastal forces south of LEGHORN destroyed
four landing craft, three F-lighters and a tug. Coastal forces
and aircraft attacked two destroyers name area and sank one
of them.
2. MILITARY
BURMA. 25th. ARAKAN. Japanese forced evacuate
positions 2+ miles southwest LETWEDET.
IMPHAL Area. Japanese forced withdraw from village
11 miles north Imphal. Points 17 miles north northeast and
13 miles northwest IMPHAL reported clear of Jupanese.
HUKA'.NG VALLEY. Chinese advance continues in face of
heavy artillery fire 19 miles east southeast SHADUZUP.
3. AIR OPLRATIONS
WESTERN FRONT. 26th. of 509 U.S. heavy bombers
despatched, 292 Fortresses attacking through cloud dropped 676
tons BRUNSWICK and 47 dropped 77 tons HANOVER. 5 escorting
fighters missing. Medium and fighter bombers attacked
objectives Northern France and Belgium including railway
centres:
S1. CHISLAIN
203 tons
LOUVAIN
122 tons
MANTES
136 tons
RIVERBRIDGE, CHERBOURG Peninsula which was hit and military
constructions. 24 Beaufighters (1 missing) attacked convoy
of three 6-7,000 ton ships with eight escort vessels off
FRISIAN ISLANDS. One large ship blew up, another was damaged
and an escort vessel set on fire.
26th/27th. 1,045 aircraft despatched:
ESSEN
493 (7 missing)
SCHWEINE JRT
226 (21 missing)
Goods Yards VILLLNEJVE
ST. GEORGES
217 (1 missing)
Intruders Sea mining, etc. 109 (2 missing).
At ESSEN marking good and built up area clearly visible by
GEORGES reports indicate very good concentration. Total about
light of two explosions. At SCHNEINFURT and VILLENEUVE ST.
37 German aircraft operated over Southern counties, mainly hit
PORTSMOUTH area. One JU 188 destroyed. Public shelter
PORTSMOUTH with at least 15 fatal casualties. Considerable
property damage PORTCHESTER and one fatal casualty.
Regraded Unclassified